HIVE Digital Technologies saw its shares rise after announcing a major $220 million AI cloud computing deal with Bell Canada and Cohere.
The three-year agreement marks another big step in HIVE’s transition from being mainly a Bitcoin mining company to becoming a player in the fast-growing artificial intelligence industry.
Under the deal, HIVE’s BUZZ High Performance Computing (HPC) division will provide AI cloud services using 2,304 Nvidia Grace Blackwell GPUs. The hardware will be installed at Bell’s AI Fabric facility in Merritt, British Columbia.
The project is designed to support Cohere’s AI models, which are used by businesses and government organizations across Canada. One of the key goals is to keep data and AI infrastructure inside Canada, giving customers greater control over security and privacy.
Bell will provide the data center and networking infrastructure, while Cohere will use the system to run its AI models and services. Canadian technology company Hypertec will supply the hardware used in the project.
Industry leaders say the partnership helps strengthen Canada’s position in artificial intelligence. It also gives organizations confidence that their data remains within Canadian borders.
For HIVE, the deal is another sign that its AI strategy is gaining momentum. The company has been investing heavily in high-performance computing as Bitcoin miners search for new revenue sources beyond cryptocurrency mining.
The contract is expected to begin generating revenue between late 2026 and early 2027. Reports suggest it could bring in around $70 million in recurring annual revenue. Combined with existing contracts, HIVE’s total contracted HPC revenue could exceed $100 million per year.
The move reflects a wider trend across the crypto mining industry. Companies such as IREN and Bitdeer are also converting parts of their mining infrastructure into AI and cloud computing operations.
Mining companies already own many of the resources needed for AI workloads, including large data centers, power supplies, cooling systems, and technical expertise. As demand for AI computing continues to grow, these assets are becoming increasingly valuable.
HIVE has already outlined larger ambitions for its AI business. Earlier this year, the company revealed plans for a major AI “super factory” in Toronto that could eventually support more than 100,000 GPUs.
The new Bell and Cohere partnership gives HIVE one of its biggest AI contracts to date and provides further proof that the company’s expansion into artificial intelligence is becoming a significant part of its future growth strategy.
