Canadian Bitcoin miner HIVE Digital Technologies said its AI subsidiary BUZZ HPC has signed a three-year GPU cloud contract worth approximately $220 million with Bell AI Fabric for AI startup Cohere, expanding the company’s expansion into high-performance computing (HPC) and AI infrastructure.
The agreement calls for BUZZ HPC to deploy 2,304 NVIDIA Grace Blackwell GPUs at a Bell Canada data center in British Columbia, where the infrastructure will support Foghere’s artificial intelligence models and services for enterprise and government customers.
According to the company, once the deployment comes into service, HIVE expects the project to contribute approximately $70 million in contracted annual recurring revenue, exceeding its contracted HPC revenue target of $100 million.
HIVE said it will finance the purchase of the AI infrastructure using a portion of the proceeds from a $115 million convertible note financing completed in April.
The company’s share price was up about 9% at the time of writing and about 24% in the past month, according to Yahoo Finance data. Sector-tracking exchange-traded fund CoinShares Bitcoin Mining ETF (WGMI) was up 5.4% on the day, and up more than 30% in the past month. HIVE stock is the fund’s eighth-largest holding.
Source: yahoo finance
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HIVE expands AI business as Bitcoin holdings decline
The deal is the latest step in HIVE’s broader expansion into AI infrastructure. In May, the company said its BUZZ HPC subsidiary planned a 320-MW AI data center campus near Toronto, capable of supporting more than 100,000 GPUs.
Earlier this month, HIVE reported that revenue from its HPC division rose to $19.5 million in fiscal 2026, nearly double from a year earlier. The company also said contracted annual recurring revenue from the business reached $35 million, supported by the deployment of Nvidia-powered GPU clusters and new enterprise contracts.
HIVE also reported a decline in its Bitcoin (BTC) treasury holdings, falling to 150 BTC from 481 BTC a quarter ago.
Source: bitcointreasuries.net
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Hashrate declines as AI investment increases
On Thursday, The Energy Mag (formerly The Miner Mag) noted that Bitcoin mining difficulty, a measure of how hard it is for miners to produce new blocks, fell 10.09% on June 14, one of the largest downward adjustments in the network’s history.
The publication attributed the decline to weak mining economics, a decline in the price of Bitcoin, seasonal power outages in Texas, and broader electricity-market dynamics. It was also argued that miners dedicating power to AI and HPC projects could alter future hashrate growth by reducing the amount of capacity available for Bitcoin mining.
Bitcoin mining difficulty. Source: coinwarz.com
The decline comes just days after Cointelegraph reported that Bitcoin mining profitability has fallen to a record low, making it harder for some operators to remain profitable.
Meanwhile, miners are continuing to expand into AI and high-performance computing. On Tuesday, IREN completed the acquisition of Spanish data center developer Nostrum Group, while TerraWulf recently added a Kentucky development site that it says could eventually support more than 1 gigawatt of AI and HPC capacity.
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