HIVE Digital Technologies shares surged as much as 14% on Monday after the company announced its largest artificial intelligence cloud contract, a five-year agreement worth approximately $350 million. The Nasdaq-listed stock traded around $3 during the morning session, up 11.52% at the time shown in market data, after gaining nearly 6% before the opening bell.
The rally reflects growing interest in HIVE’s transition from Bitcoin mining into AI and high-performance computing. The contract could give the company more predictable revenue, although delivering the project will require considerable investment.
HIVE signed the agreement through its BUZZ High Performance Computing subsidiary with an unnamed investment-grade enterprise customer. Nvidia is supplying the technology used in the project but was not identified as the customer. It is therefore an Nvidia-powered cloud contract rather than a confirmed direct deal between HIVE and Nvidia.
HIVE moves closer to its $200 million AI revenue target
The agreement is expected to contribute approximately $70 million in annualized revenue. It raises BUZZ HPC’s combined active and contracted annual revenue run rate to about $180 million, bringing HIVE closer to its $200 million GPU cloud ARR target for the end of 2026.
Approximately $35 million of that run rate is already active, while another $145 million is contracted and expected to come online through the fourth quarter. ARR is a forward-looking run-rate calculation, not revenue already reported in HIVE’s financial statements. Cancellations, discounts or service changes could affect the final amount.
BUZZ HPC will deploy 2,016 Nvidia Blackwell Ultra GPUs in GB300 NVL72 rack-scale systems. The cluster will use Nvidia Quantum-X800 InfiniBand networking and VAST Data storage to support AI training, inference and advanced enterprise workloads.
The hardware will be installed at the Bell AI Fabric facility in Merritt, British Columbia. The site will use renewable hydroelectric power and closed-loop liquid cooling that does not require continuing water consumption for cooling. HIVE expects the system to become operational in the fourth quarter of 2026.
The official contract announcement estimates capital expenditure at approximately $185 million. The customer will provide a 10% upfront deposit worth about $35 million. HIVE plans to fund the remaining cost with proceeds from its June 2026 zero-coupon convertible bond and additional equipment financing.
HIVE will retain ownership of the GPU infrastructure after the five-year contract ends. That could create further revenue opportunities, although the equipment’s future value will depend on demand, performance and the arrival of newer processors.
The $350 million contract value should not be treated as profit. HIVE must account for hardware investment, debt, electricity, maintenance, staffing and depreciation. Once the latest capacity is operational, management expects its wider HPC and AI business to generate approximately $500,000 in daily revenue.
Nebius Stock Surges as AI Cloud Revenue Jumps in Q2 Earnings
Shell Share Price Falls on Ex-Dividend Date: What Investors Need to Know
Bitcoin mining remains HIVE’s largest business
The contract follows an earlier sovereign-AI project involving Bell AI Fabric and Cohere. That deployment covers 2,304 Nvidia GB200 GPUs and adds about $75 million in contracted ARR. When existing capacity is included, HIVE expects to have approximately 9,800 active and contracted cloud GPUs.
The expansion places HIVE among infrastructure companies competing for long-term AI computing customers. Developments involving CoreWeave’s AI infrastructure partnerships show how access to GPUs, financing and customer commitments increasingly influence valuations in this sector.
HIVE’s strategy also depends on Nvidia’s broader ecosystem of processors, networking and rack-scale systems. That makes Nvidia’s expanding AI data-centre strategy important to operators building cloud capacity around its hardware.
For the fiscal quarter ended June 30, HIVE reported revenue of $79.1 million, up 73.5% from a year earlier. Digital-currency mining generated $72.1 million, while BUZZ HPC contributed $7.1 million, an increase of 46.7% year over year and 52.1% sequentially.
HIVE received 1,004 Bitcoin in mining rewards during the quarter as its average operating hashrate rose to 24 exahashes per second. The company ended June with approximately $208 million in cash and $11.2 million in digital currencies.
Despite the revenue growth, HIVE recorded a $142.9 million GAAP net loss. That included an $84.7 million provision related to disputed Swedish VAT assessments and $53.7 million in depreciation. Adjusted EBITDA was $13.4 million, while gross operating margin reached $24.2 million.
Before Monday’s rally, HIVE stock had gained approximately 13% over 12 months and traded near $2.69. Further gains may depend on whether the company installs the Blackwell cluster on schedule, converts contracted ARR into reported revenue and produces sufficient returns after financing and operating costs.
Make Swikblog your go-to source on Google for reliable updates, smart insights, and daily trends.
