HIVE Is Turning Its Crypto Infrastructure Into a $350 Million AI Business

HIVE has secured a five-year AI cloud contract as it converts infrastructure developed for cryptocurrency mining into a growing GPU-computing business.

HIVE Digital Technologies is using the infrastructure it built for cryptocurrency mining to pursue a potentially more dependable source of revenue.

The company’s BUZZ HPC division has signed a five-year AI cloud-services agreement worth approximately $350 million. The contract is expected to add about $70 million in annualised revenue once the necessary computing systems are fully operating.

BUZZ plans to install a dedicated cluster containing 2,016 Nvidia Blackwell Ultra GPUs at the Bell AI Fabric facility in Merritt, British Columbia. The system will support demanding tasks including AI training and inference, although HIVE has not identified the customer beyond describing it as an investment-grade enterprise.

The equipment is expected to begin operating during the fourth quarter of 2026. HIVE estimates that deploying the GPUs and supporting infrastructure will require approximately $185 million in capital spending. It will receive an upfront deposit of around $35 million from the customer, with financing expected to cover part of the remaining cost.

The contract highlights a broader shift taking place across the cryptocurrency-mining industry.

Crypto miners already control large data-centre sites, power agreements and cooling systems. Those assets can sometimes be adapted to host AI hardware, allowing operators to diversify away from the sharp price swings and changing economics of digital-asset mining.

HIVE is particularly well placed to make that transition because the Merritt facility is powered by hydroelectricity. It will also use closed-loop liquid cooling, which the company says will avoid continuous water consumption while managing the heat created by high-performance GPUs.

However, the strategy is not automatically low-risk. AI infrastructure is expensive, hardware can become outdated quickly and delivering the projected revenue depends on completing the facility on schedule. The identity of the customer has also not been disclosed, limiting the information available to investors assessing the agreement.

Even with those uncertainties, a five-year contract provides considerably more revenue visibility than cryptocurrency mining normally offers. HIVE will also retain ownership of the Nvidia equipment after the agreement ends, potentially allowing it to continue generating income from the cluster.

The company is no longer relying solely on digital currencies to justify its data centres and electricity capacity. It is attempting to turn those assets into the foundations of an AI cloud business, and this $350 million agreement is its clearest step in that direction so far.