HIVE Digital Technologies' share price climbed 14.13% after the company's BUZZ High Performance Computing subsidiary signed a $350 million five-year contract to supply 2,016 Nvidia Blackwell Ultra GPUs to an enterprise customer.
The deal will generate $70 million in annualized revenue and bring BUZZ HPC's total projected annual revenue to roughly $180 million, with the GPUs housed at a facility in British Columbia powered by renewable energy—a competitive advantage as businesses seek sustainable AI infrastructure.
What happened
HIVE Digital Technologies' BUZZ High Performance Computing subsidiary signed a five-year GPU agreement with an enterprise customer to deliver 2,016 Nvidia Blackwell Ultra GPUs for AI model training and inference, housed at the Bell AI Fabric facility in British Columbia powered by renewable hydroelectric energy.
Why it matters
The deal is expected to generate $70 million in annualized revenue for BUZZ HPC and bring its total projected annualized revenue to roughly $180 million, positioning HIVE to capture a larger share of the AI infrastructure build-out as demand for high-performance, energy-efficient data centers grows.
What to watch
Management is targeting $200 million in annual recurring revenue for HIVE's GPU cloud business, with the project forecasted to produce strong recurring cash flow upon full deployment despite approximately $185 million in estimated capital expenditures.
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HIVE Digital Technologies announced a major enterprise contract that underscores the intense demand for GPU-powered AI infrastructure as companies race to build out large language model training and deployment capabilities. The $350 million five-year deal with an investment-grade enterprise customer reflects both the scale of investment required to support AI workloads and the premium that buyers place on reliable, high-performance systems. By combining Nvidia's latest Blackwell Ultra architecture with renewable hydroelectric power and efficient cooling at its British Columbia facility, HIVE is addressing a key pain point for enterprise customers: the sustainability and cost profile of energy-intensive AI data centers. The deal's financial impact—$70 million in new annualized revenue and a path toward $180 million total for BUZZ HPC—demonstrates that the company's business model of marrying renewable energy sources to computing infrastructure is commercially viable at scale. Management's stated target of $200 million in annual recurring revenue for the GPU cloud business suggests confidence that this contract is a template for future wins rather than an isolated transaction.
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