Key Highlights
- BUZZ HPC, a HIVE Digital subsidiary, secured a five-year GPU cloud services agreement valued at $350 million with an investment-grade enterprise client.
- The agreement is projected to generate approximately $70 million in annual revenue, pushing BUZZ HPC’s total annualized revenue to approximately $180 million.
- The deployment will feature 2,016 NVIDIA Blackwell Ultra GPUs located at a British Columbia facility in Merritt.
- Shares of HIVE climbed roughly 8% during Monday’s premarket session after the deal was disclosed.
- Total capital investment for the infrastructure is estimated at $185 million, with the client providing a 10% upfront payment.
Shares of HIVE Digital Technologies (NASDAQ: HIVE) climbed approximately 8% in Monday’s premarket session, reaching $2.91, following the announcement of a significant contract secured by its BUZZ High Performance Computing Inc. division.
HIVE Digital Technologies Ltd., HIVE
The subsidiary finalized a five-year GPU cloud services contract with an investment-grade corporate client, valued at approximately $350 million. This partnership is expected to contribute roughly $70 million in annual revenue to BUZZ HPC’s financial performance.
With this addition, BUZZ HPC’s overall annualized revenue reaches approximately $180 million. Currently, about $35 million of this figure represents active revenue, while the remaining $145 million in contracted commitments will progressively activate through the fourth quarter of 2026.
According to the terms, BUZZ HPC will install 2,016 NVIDIA Blackwell Ultra GPUs configured in GB300 NVL72 rack-scale architectures. The infrastructure will leverage NVIDIA Quantum-X800 InfiniBand connectivity alongside VAST Data’s storage solution.
The computing cluster is scheduled to become operational later this year at the Bell AI Fabric data center in Merritt, British Columbia. This location operates entirely on hydroelectric energy and incorporates closed-loop liquid cooling technology, which eliminates continuous water usage.
Following deployment completion, HIVE will maintain ownership of the NVIDIA artificial intelligence infrastructure. Full delivery and implementation are anticipated by the fourth quarter of 2026.
Financial Structure
The capital investment required for this deployment is projected at approximately $185 million. HIVE will collect an initial deposit representing roughly 10% of the contract’s total value.
According to CEO Aydin Kilic, the company plans to finance the GPU acquisition using funds from its June 2026 convertible bond issuance and debt financing arrangements. HIVE also disclosed that it maintains roughly 400 MW of available capacity across its Canadian facilities for additional data center expansion.
Management indicated that the customer deposit, combined with previously announced financing vehicles and equipment financing options, should adequately cover the complete deployment costs.
Wall Street Perspective
Analyst consensus on HIVE stands at Buy, with a mean price target of $6.80. Price projections span from a floor of $4.60 to a ceiling of $10.00 among 10 covering analysts.
Recent analyst activity includes Chardan Capital launching coverage in July with a Buy recommendation and $7.50 price objective, while Canaccord Genuity reaffirmed its Buy rating with a $10.00 target in June.
On the technical front, HIVE is currently trading 13.6% beneath its 50-day moving average of $3.36 and 5.8% below its 100-day moving average of $3.08. Significant resistance exists around the $3.00 level, coinciding with the 200-day moving average territory.
HIVE premarket stock price gained 8.16% to $2.91 during Monday’s early trading.
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