HIVE Digital Technologies announced that its BUZZ high‑performance computing unit has secured customer agreements totaling $30 million in total contract value for a 504‑GPU deployment at its Canada West site in Manitoba. The contracts span two‑year fixed terms and are expected to become fully operational during the quarter ending March 31, 2026, generating an estimated $15 million in annual recurring revenue once the GPUs are online.
The new contracts arrive on the heels of record revenue for both BUZZ and the parent company in fiscal Q2 2026, when HIVE reported adjusted EBITDA of $31.5 million—almost triple the year‑over‑year figure. The HPC segment, which currently generates roughly $20 million in annual revenue, is projected to rise to about $35 million once the Manitoba deployment is complete, underscoring the rapid acceleration of the company’s AI‑cloud business.
Frank Holmes, Executive Chairman, said, "We are entering 2026 with strong momentum in our HPC and GPU cloud business. HIVE has built a track record as one of the longest‑standing publicly traded crypto Tier‑I data center operators, performing through multiple market cycles while protecting cash flow and balance sheet strength. Now, with BUZZ, we are leveraging that foundation to build a high‑growth AI cloud platform spanning Canada, Sweden and Paraguay." Aydin Kilic, President and CEO, added, "Our vision is to scale our HPC GPU AI cloud business toward approximately $140 million in ARR over the next year, subject to market conditions and successful infrastructure deployment." Kilic also noted, "This is just the beginning. Demand for long‑term access to high‑performance, power‑efficient AI compute continues to expand globally, and we are excited to further scale our GPU cloud business throughout 2026."
The contracts reinforce HIVE’s strategic pivot away from legacy Bitcoin mining toward high‑margin AI‑cloud services. By leveraging its existing data‑center footprint and green‑energy‑driven operations, BUZZ can offer power‑efficient GPU compute at scale, positioning the company to capture a growing share of the AI‑infrastructure market. The Manitoba deployment is part of a broader expansion that includes sites in Sweden and Paraguay, allowing HIVE to serve a global customer base while maintaining low operating costs.
Investors responded positively to the announcement, reflecting confidence in HIVE’s ability to convert its data‑center assets into a high‑growth, recurring‑revenue business. The new contracts are expected to accelerate the company’s transition to a diversified, AI‑focused model and to strengthen its balance sheet through increased cash flow generation.
Looking ahead, HIVE’s management signals a continued focus on scaling the BUZZ platform. The company plans to expand its GPU cloud offering across additional markets, with the goal of reaching $140 million in annual recurring revenue within the next year. This growth trajectory is supported by strong demand for AI compute and the company’s proven ability to deploy large‑scale GPU clusters efficiently.
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