HIVE Stock Surges 10% After Securing $220M AI Cloud Computing Deal

HIVE Digital Technologies (NASDAQ: HIVE) saw its shares climb nearly 10% in pre-market trading on Thursday after announcing a major $220 million GPU cloud computing agreement with Bell Canada and artificial intelligence company Cohere. The three-year contract marks another significant step in HIVE’s strategic shift from bitcoin mining toward high-performance computing (HPC) and AI infrastructure services.

Under the agreement, HIVE’s BUZZ High Performance Computing division will deploy 2,304 Nvidia Grace Blackwell GPUs at Bell Canada’s AI Fabric data center located in Merritt, British Columbia. The advanced computing infrastructure will serve as a dedicated processing layer for Cohere’s enterprise AI models, which are designed to support Canadian government agencies and corporate customers.

The partnership aligns with Canada’s broader effort to strengthen domestic AI capabilities and reduce dependence on foreign-controlled artificial intelligence infrastructure. By keeping all computing resources and data operations within Canada, the project supports national objectives related to data sovereignty, security, and technological independence.

The deployment is expected to become operational between late 2026 and early 2027. Once fully implemented, the contract is projected to generate approximately $70 million in annual recurring revenue (ARR) for HIVE. When combined with the company’s existing realized ARR of roughly $35 million, HIVE’s total contracted HPC revenue is expected to surpass the $100 million mark.

The announcement highlights HIVE Digital Technologies’ accelerating transformation into a diversified technology company focused on AI cloud computing, GPU infrastructure, and high-performance data center operations. While the company remains active in the cryptocurrency mining sector, the latest agreement demonstrates growing commercial demand for its AI-focused services.

Investors responded positively to the news, viewing the deal as a strong validation of HIVE’s long-term growth strategy. As demand for AI computing power continues to rise worldwide, HIVE’s expanding presence in the AI infrastructure market could position the company to benefit from one of the fastest-growing segments in the technology industry.