HIVE Stock Jumps 7% on $220M Bell-Cohere AI Deal
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- HIVE Digital Technologies closed a $220M, three-year GPU cloud contract with Bell Canada and Cohere, deploying 2,304 NVIDIA Grace Blackwell GPUs at Bell's purpose-built data center in Merritt, British Columbia
- HIVE stock climbed more than 7% on the TSX Thursday, the company's largest AI infrastructure deal to date
- The contract adds an expected $70M in new annual recurring revenue once deployment goes live between late 2026 and early 2027, pushing HIVE's contracted HPC revenue past $100M
- Cohere, a Toronto-based foundation model company recently valued at ~$20B after its announced merger with Germany's Aleph Alpha, anchors the arrangement as the compute client; Ottawa has committed over $2B to its Sovereign AI Compute Strategy with $240M going directly to Cohere
- HIVE has a larger 320-megawatt AI data center planned for the Greater Toronto Area, designed to house 100,000+ Nvidia GPUs at full build-out, targeting $360M in annualized recurring revenue
- HIVE's pivot from crypto mining — underway since 2022 — accelerated with a Dell GPU deal last November and a $115M convertible note offering in April; the company still reported $278.3M in Bitcoin mining revenue last quarter
Why it matters: HIVE has converted its Bitcoin-mining GPU stockpile into its first nine-figure AI contract: $220M from Bell Canada and Cohere for 2,304 NVIDIA Blackwell chips, adding $70M in locked-in annual recurring revenue at a time when crypto-mining margins keep compressing. With HIVE targeting $660M in HPC revenue by end of 2028, the pivot from volatile block-reward income to multi-year sovereign-AI infrastructure contracts is now producing real contracted cash flow.
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