Finance News

Story: HIVE Digital’s $350M AI Deal Hinges on $185M GPU Investment

By Sydney TheCMO

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What the GPU Buildout Actually Looks Like. BUZZ plans to deploy 2,016 NVIDIA Blackwell Ultra GPUs, housed inside GB300 NVL72 systems, at the…

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Revenue That's Mostly Still on Paper. Here's where things get a bit murky. BUZZ's total reported annual recurring revenue is now around…

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HIVE Digital Technologies just landed a $350 million AI cloud deal. Big number. But the whole thing depends on whether the company can spend $185 million on GPUs fast enough to…

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The five-year contract runs through HIVE's BUZZ High Performance Computing unit and was signed with a customer the company hasn't named — only describing them as investment-grade.

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Not yet confirmed: the $35 million upfront payment.

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The unnamed customer agreed to pay nearly 10% of the contract's total value — around $35 million — upfront. HIVE said so publicly.

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BUZZ plans to deploy 2,016 NVIDIA Blackwell Ultra GPUs, housed inside GB300 NVL72 systems, at the Bell AI Fabric facility in Merritt, British Columbia.

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HIVE CEO Aydin Kilic said the company's recent debt raises would fund the GPU acquisition. HIVE pulled in $130 million from zero-percent exchangeable senior notes in June, on top…

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HIVE also reported $208 million in cash. But it's unclear how much of that is actually earmarked for this project versus other operations. The company hasn't said.

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See also: Optimism Redirects 546.9 Million OP Tokens from Airdrops to Strategic Ecosystem Fund

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Here's where things get a bit murky. BUZZ's total reported annual recurring revenue is now around $180 million on paper. Only $35 million of that is currently active.

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Once everything is running, HIVE projects its HPC and AI operations could generate roughly $500,000 per day. That's a meaningful daily run rate.

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The broader AI infrastructure market is competitive right now. Demand for high-performance GPU compute has been intense across the industry, which is probably part of why HIVE…

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HIVE's financial structure here is worth watching closely. Zero-percent exchangeable notes are a clever way to raise capital cheaply, but they come with conversion mechanics that…

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The Merritt, British Columbia facility adds a geographic dimension worth noting. Canada has become a real destination for compute infrastructure builds, partly because of power…

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