Skip to content

Bitcoin miner HIVE lands $220M sovereign AI deal with Bell Canada

Category
News
Published
Reading time
4 min

HIVE Digital's GPU unit BUZZ HPC signed a $220M, three-year cloud contract with Bell Canada and Cohere, placing 2,304 NVIDIA Blackwell chips behind Canada's sovereign AI push.

For years, bitcoin miners operated on a single logic: build data centers, keep machines running, convert electricity into block rewards. HIVE Digital is now testing a different calculation. The company just signed a three-year, $220 million contract to supply GPU cloud infrastructure for Canada's sovereign AI push — a bet that the data center expertise miners accumulated translates into something more durable than mining margins.

The deal runs through BUZZ HPC, HIVE's high-performance computing subsidiary. On the other side: Bell Canada, the country's largest telecom operator, contributing a purpose-built facility in Merritt, British Columbia, and national connectivity; and Cohere, the Canadian enterprise AI company whose language models run inside Oracle, Salesforce, and a wide roster of Fortune 500 deployments. At the hardware layer: 2,304 NVIDIA Grace Blackwell GPUs in NVL72 rack-scale configurations, interconnected via Quantum InfiniBand and liquid-cooled. These are the chips Microsoft, Google, and Amazon are competing to lock up.

"Sovereign AI" is the framework driving the contract. Canada, like France, the UAE, and Germany, has made a policy decision that critical government and enterprise AI workloads should stay on domestic soil rather than route through U.S. hyperscaler infrastructure. BUZZ HPC fills that slot: GPU capacity inside Canadian borders, operated by a Canadian entity, with data residency guarantees that government buyers increasingly require.

The contract reshapes HIVE's revenue profile. The company currently books roughly $35 million in annual recurring HPC revenue. The Bell-Cohere deployment is projected to add $70 million in ARR once systems go live, expected between late 2026 and early 2027, pushing total contracted HPC revenue above $100 million. Shares jumped 10% the day the deal was announced. HIVE also closed on a 32-megawatt data center acquisition in Boden, Sweden, extending its AI compute presence into Europe.

The miner-to-AI-cloud pivot has circulated as a narrative for a few years, usually with more ambition than signed contracts behind it. HIVE's deal is different in that it names the counterparties, specifies the hardware, and locks in a three-year revenue horizon. For mining operators still evaluating the same move, the practical question is whether they can fund Blackwell procurement and secure long-term enterprise buyers before a new wave of AI compute capacity hits the market later this year.

Questions and answers

Frequently asked questions about this article

Sovereign AI refers to building national AI compute infrastructure so critical workloads are processed on domestic soil rather than U.S. cloud platforms like AWS or Azure. Canada wants data residency guarantees for government and enterprise applications, which requires GPU capacity physically located and operated within Canadian borders.