HIVE's $350M AI Deal Hangs in Balance as $185M GPU Buildout Looms
HIVE Digital Technologies, a Bitcoin miner and high-performance computing unit, has signed a $350 million AI cloud contract. However, to capitalize on this deal, HIVE needs to complete a $185 million GPU buildout by the end of Q4 2026.
The five-year agreement is expected to generate about $70 million in annualized revenue once the infrastructure is deployed at HIVE's Bell AI Fabric facility in Merritt, British Columbia.
BUZZ High Performance Computing unit will install 2,016 NVIDIA Blackwell Ultra GPUs in GB300 NVL72 systems. This investment is crucial for the company to meet the deal's requirements and unlock most of its projected revenue.
HIVE has already raised $130 million from zero-percent exchangeable senior notes and another $245 million during the quarter. However, it remains unclear how much of these proceeds are available for the project or the terms of additional equipment financing.