HIVE unit BUZZ lands $30M in AI cloud contracts

HIVE Digital Technologies Ltd. said its high-performance computing arm, BUZZ, has signed customer agreements worth about $30 million to boost its AI cloud ambitions.

According to a press statement shared with Cryptopolitan on Friday, the Canadian company announced that BUZZ, its Tier-III data center platform, secured two-year fixed-term contracts subject to performance obligations.

The contracts are expected to expedite the expansion of HIVE’s Tier-III operations, which support advanced high-performance computing workloads. 

Buzz signs infrastructure deal to deploy AI-GPUs

Per HIVE’s statement, the new deals anchor the first phase of BUZZ’s AI-optimized GPU deployment at its Canada West facility in Manitoba. Compute capacity from this phase is scheduled to come online during the quarter ending March 31, 2026.

The initial build-out consists of 504 liquid-cooled GPUs built on Dell servers, all meant for high-performance AI and HPC workloads. Executives stated that, based on executed contracts, current pricing, and deployment schedules, this first phase should generate about $15 million in annual recurring revenue upon full operationalization.

HIVE expects total annualized revenue from its HPC segment to increase from about $20 million to $35 million upon full deployment, subject to capital expenditures, operating costs, and customer utilization.

The technology company also expects to incur capital expenditures for electrical systems, cooling infrastructure, and working capital needs. Other operating expenses will include power, hosting, maintenance, staffing, and network costs, the firm’s higher-ups said.

According to HIVE’s President Aydin Kilic, the company could scale its HPC GPU AI cloud business toward approximately $140 million in annual recurring revenue over the next year. In a prior earnings webcast, the tech firm revealed it aimed to deploy 2,000 AI-optimized GPUs at its Canada West facility this year.

“This is just the beginning. Demand for long-term access to high-performance, power-efficient AI compute continues to expand globally, and we are excited to further scale our GPU cloud business throughout 2026,” Kilic told reporters earlier today.

Craig Tavares, President and Chief Operating Officer of BUZZ HPC, said Canada needs more sovereign AI compute capacity and domestic infrastructure to serve local workloads and global AI companies from a secure base.

BUZZ to execute Tier-III strategy with capital discipline

Executive Chairman of HIVE, Frank Holmes, believes the company is doing well in 2026, supported by the strong momentum in its HPC and GPU cloud business.

“HIVE has built a track record as one of the longest-standing publicly traded crypto Tier-I data center operators, performing through market cycles while protecting cash flow and balance sheet strength. Now, with BUZZ, we are leveraging that foundation to build a high-growth AI cloud platform spanning Canada, Sweden, and Paraguay,” the executive boasted.

Speaking on capital requirements of data centres, Holmes propounded that Tier-I systems for hashrate services need about $1 million per megawatt of infrastructure. In comparison with more advanced systems, he explained that Tier-III facilities have materially higher capital demands because they include premium GPU hardware, power architecture, and advanced cooling systems.

Constructing and equipping a comparable fully self-funded Tier-III facility with similar GPU capacity could require around $70 million in capital expenditures. HIVE has already purchased properties and buildings for its Tier-I facilities, but the chief executive said the firm is still assessing selective Tier-III conversions and colocation strategies for HPC.

Bitcoin mining to continue with AI on the horizon

On February 5, HIVE released operational results for January 2026, which showed a 290% year-over-year increase in hashrate. The average hashrate reached 22.2 exahash per second and peaked at 23.7 EH/s. HIVE produced 297 Bitcoin in January, a 191% increase from the total recorded 12 months earlier.

The company’s average daily production reached 9.6 bitcoin per day in January, while maintaining more than 2% of the global Bitcoin network hashrate throughout the month. Moreover, the fleet efficiency averaged 17.5 joules per terahash, while mining rigs produced approximately 13.4 Bitcoin per exahash.

HIVE will release financial results for the nine months ended December 31, 2025, on February 17, during an earnings call scheduled for 8:00 AM Eastern Time.

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