Key Highlights
- BUZZ HPC, a subsidiary of HIVE Digital, entered into a five-year GPU cloud services agreement valued at $350 million with an investment-grade corporate client.
- The agreement contributes approximately $70 million in annual revenue, elevating BUZZ HPC’s total annualized revenue to approximately $180 million.
- The deployment involves 2,016 NVIDIA Blackwell Ultra GPUs at BUZZ HPC’s Merritt, British Columbia location.
- Shares of HIVE Digital climbed roughly 8% during premarket hours on Monday after the deal was announced.
- Total capital investment for the GPU deployment is projected at approximately $185 million, with the customer providing a 10% initial deposit.
Shares of HIVE Digital Technologies (NASDAQ: HIVE) climbed approximately 8% during Monday’s premarket session, reaching $2.91, following the announcement of a significant contract secured by its subsidiary, BUZZ High Performance Computing Inc.
HIVE Digital Technologies Ltd., HIVE
BUZZ HPC has entered into a five-year cloud computing services contract with an investment-grade enterprise client, valued at approximately $350 million. This agreement is expected to generate roughly $70 million in annual revenue for BUZZ HPC.
With this new contract, BUZZ HPC’s total annualized revenue reaches approximately $180 million. Currently, about $35 million is already generating active revenue, while the remaining $145 million in contracted revenue is scheduled to become operational through the fourth quarter of 2026.
The contract calls for BUZZ HPC to install 2,016 NVIDIA Blackwell Ultra GPUs configured in GB300 NVL72 rack-scale systems. The infrastructure will utilize NVIDIA Quantum-X800 InfiniBand networking technology alongside VAST Data’s storage solution.
The GPU cluster is scheduled to become operational later this year at the Bell AI Fabric data center in Merritt, British Columbia. This facility operates exclusively on hydroelectric energy and employs closed-loop liquid cooling technology, which eliminates continuous water usage.
Upon completion of the deployment, HIVE will maintain full ownership of the NVIDIA AI infrastructure. The delivery and installation are projected for completion in the fourth quarter of 2026.
Financing the Deployment
The capital required for the deployment is estimated at approximately $185 million. HIVE will collect an initial deposit representing roughly 10% of the contract’s total value.
Chief Executive Officer Aydin Kilic stated that the company plans to utilize funds from its June 2026 convertible bond issuance and debt financing to purchase the GPUs. HIVE also disclosed that it has roughly 400 MW of available capacity in Canada for additional data center expansion projects.
According to the company, the customer deposit, when combined with previously disclosed financing arrangements and equipment financing options, should be sufficient to cover the complete deployment costs.
Analyst Perspectives
Wall Street analysts have assigned HIVE a Buy rating, with a consensus price target of $6.80. Analyst targets span from $4.60 on the low end to $10.00 on the high end, based on coverage from 10 analysts.
Notable analyst actions include Chardan Capital launching coverage in July with a Buy rating and a $7.50 price target, while Canaccord Genuity reaffirmed its Buy rating with a $10.00 target in June.
From a technical analysis perspective, 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 appears near the $3.00 level, which aligns with the 200-day moving average area.
HIVE’s premarket stock price increased 8.16% to $2.91 during Monday morning trading.
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