HIVE shares jump 10 percent after $220 million AI deal announced! What does this mean for the future of digital infrastructure?

On Thursday, HIVE Digital Technologies saw its shares surge by 10 percent in premarket trading after the company revealed a major three-year GPU cloud services agreement, valued at $220 million, with Bell Canada and Canadian AI firm Cohere. The announcement marks a pivotal step in HIVE’s shift from an exclusive focus on Bitcoin mining toward high performance computing in the fast-growing artificial intelligence sector.

The scope of the deal

According to the agreement, HIVE’s BUZZ High Performance Computing unit will deploy 2,304 Nvidia Grace Blackwell GPUs at Bell’s AI Fabric facility in Merritt, British Columbia. This state-of-the-art infrastructure is designed to power a dedicated computing layer for Cohere, supporting the company’s AI models and serving public sector and enterprise clients across Canada.

Bell Canada stands as one of the country’s top telecommunications companies, while Cohere has made a name for itself as a leading Canadian firm specializing in large language models and enterprise AI solutions.

Mini glossary: GPU refers to a graphics processing unit, widely used in training and running AI models. High performance computing describes scalable IT infrastructure designed for big data and complex computations.

Infrastructure to remain within Canada

HIVE emphasized that all infrastructure elements will be kept entirely within Canadian borders. This aligns with Ottawa’s broader policy objective of reducing the country’s reliance on foreign-controlled artificial intelligence technology.

The GPU installation is expected to go online between late 2026 and early 2027. Upon completion, the project is projected to add approximately $70 million to HIVE’s annual recurring revenue.

A new revenue milestone

Taking into account HIVE’s current annual recurring revenue, which stands at roughly $35 million, the deal pushes its contracted high performance computing revenue target beyond $100 million. This milestone demonstrates HIVE’s transformation into a company with more visible and stable infrastructure-driven income streams.

Recently, HIVE has shifted its focus from exclusive cryptocurrency mining to expanding its data center capacity and AI computing services. The latest deal is widely viewed as a validation of this strategy, unlocking new streams of revenue with significant growth potential.

Other market headlines and repeated trading volume statistics mentioned in the original coverage were excluded due to their lack of direct relevance to this development. The spotlight remains on HIVE’s major Canada-based artificial intelligence infrastructure contract.

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