HIVE Digital Signs $600 Million in GPU Cloud Contracts as Bitcoin Mining Subsidiary Pivots

HIVE Digital Technologies has signed approximately $600 million in AI cloud contracts in 2026, according to figures released by the company, making it one of the clearest examples of a Bitcoin miner converting data centers into contracted computing infrastructure. The deals run through BUZZ High Performance Computing, the subsidiary that rents GPU capacity to AI customers. The company's mining rigs, meanwhile, continue to produce more than 11 BTC per day.

The $600 million order book rests on three primary GPU cloud contracts signed this year. Two of them carry nearly all of the weight, and one of those counterparties is unnamed.

The breakdown:

• A three-year contract worth approximately $225 million with Bell AI Fabric, which HIVE describes as a sovereign AI agreement. Bell AI Fabric supports the AI developer Cohere Inc.
• A five-year contract worth approximately $350 million with an unidentified customer, described only as an investment-grade enterprise client.
• A third contract of unspecified size completing the total.

Those signed obligations are converting into recurring revenue. HIVE's contracted GPU cloud annual recurring revenue reached approximately $185 million as of September 30, 2026, and the company targets roughly $200 million by the end of the year. To fund the expansion, HIVE recently took on a $129 million loan aimed at growing GPU capacity built on NVIDIA technology.

The takeaway: two deals account for the bulk of the book, and half of that value rests on a counterparty investors cannot independently assess.

Does mining still carry the business?

Largely, yes. HIVE mined 1,070 BTC in its second quarter of fiscal 2027, up 49% year over year. Daily output has ranged between 9 and 12 BTC, the company said, with hashrate running between 23 and 25 EH/s. HIVE claims mining and AI operations together generate daily revenues exceeding $1 million.

The financial picture is mixed. Total Q2 FY2027 revenue came in at $84.9 million, with high-performance computing revenue up 70.7% year over year. But HIVE posted a net loss of $78.7 million for the quarter, driven in part by a $31.2 million impairment on mining equipment. The impairment is a reminder that rising coin output does not immunize older hardware from writedowns. On the balance sheet, the company held $139 million in cash plus $22.6 million in digital currencies, including Bitcoin.

The takeaway: mining pays the bills today, but impairments show the asset base depreciates even when production climbs.

Why a miner becomes an AI landlord?

HIVE operates hydroelectric-powered data centers in Canada, Sweden, and Paraguay, sites originally built to feed power-hungry mining rigs. The diversification logic is straightforward. Bitcoin mining revenue fluctuates with coin price and network difficulty, while a five-year cloud contract pays on a fixed schedule regardless of crypto market conditions.

The strategic shift is fundamentally about revenue quality. Contracted ARR from named or investment-grade customers resembles the predictable income that public market investors typically reward, and $200 million in annualized GPU revenue would run at a meaningful clip against a quarter in which the entire company booked $84.9 million. That is roughly $50 million per quarter from the AI segment alone if the target holds.

The caveats are equally concrete. Concentration risk sits at the center of the story: two contracts carry most of the $600 million, and the $350 million customer is anonymous. The $129 million NVIDIA-focused loan adds leverage to a company already absorbing hardware impairments, and the Bell AI Fabric deal ties HIVE to the sovereign AI trend through a telecom partner and Cohere.

In plain terms: the pivot improves revenue predictability, but investors are underwriting credit quality largely on management's word.

The next test arrives at year-end 2026, when HIVE must close the gap between $185 million in contracted ARR and its $200 million target.