HIVE Digital Technologies shares jumped 11% after announcing a five-year, $350 million GPU cloud services contract—the company's largest AI deal to date.
The agreement with an unnamed investment-grade enterprise customer will generate approximately $70 million in annualized revenue and deploy 2,016 NVIDIA Blackwell Ultra GPUs in British Columbia, bringing HIVE's total contracted annualized revenue for its GPU cloud business to $180 million and positioning the company to reach its $200 million ARR goal by year-end.
What happened
HIVE Digital Technologies signed a five-year, $350 million GPU cloud services agreement through its BUZZ High Performance Computing subsidiary with an unnamed investment-grade enterprise customer. The deal is expected to generate approximately $70 million in annualized revenue and will deploy 2,016 NVIDIA Blackwell Ultra GPUs at a facility in Merritt, British Columbia, with the cluster expected to be operational later this year.
Why it matters
The contract brings BUZZ HPC's total annualized revenue to $180 million and puts HIVE's $200 million annualized recurring revenue goal for the GPU cloud business within reach. The deal validates the company's strategic pivot from bitcoin mining to AI compute infrastructure—a shift investors have been pricing in—and provides stable, long-term cash flows from a creditworthy customer.
What to watch
The cluster is guided to generate $500,000 per day in HPC and AI daily revenue once deployed. Capital expenditures total $185 million, with the customer providing an upfront deposit of $35 million; investors should monitor whether that revenue rate materializes on schedule and track progress toward the $200 million ARR target by year-end, as well as the company's ability to fund the remaining buildout through convertible debt and equipment financing.
Ask the AI about this article →
HIVE Digital Technologies has been repositioning itself from a pure-play bitcoin miner into an AI infrastructure operator, and this $350 million contract represents a major validation of that strategic pivot. The deal adds $70 million in annualized revenue and brings the company's total contracted GPU cloud revenue to $180 million across its BUZZ HPC subsidiary—putting the company squarely within reach of its year-end $200 million annualized recurring revenue target. The five-year term and investment-grade customer credit quality provide the predictable cash flow profile that makes long-term capacity deployments economically attractive for a company still building out infrastructure.
The contract's scale relative to HIVE's market cap ($883.85 million) reflects the capital intensity of AI compute: a $185 million buildout and 2,016 NVIDIA Blackwell Ultra GPUs represent a significant bet. However, the structure—10% upfront deposit from the customer, plus convertible debt and equipment financing—distributes that risk and suggests HIVE's balance sheet ($208 million in cash as of Q1 fiscal 2027) can support the deployment without catastrophic equity dilution. The muted response from NVIDIA (up 0.8%) and the broader bitcoin miner peer group (Cipher Mining up 2%) confirms this is a company-specific catalyst rather than a sector rotation, and underscores that AI compute revenue now matters more to HIVE's story than bitcoin mining.
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