Canadian bitcoin mining company HIVE Digital Technologies announced that its artificial intelligence subsidiary BUZZ HPC has signed a three-year GPU cloud contract worth approximately $220 million with Bell AI Fabric for artificial intelligence startup Cohere, expanding the company’s focus on high-performance computing (HPC) and artificial intelligence infrastructure.
The agreement calls for BUZZ HPC to deploy 2,304 NVIDIA Grace Blackwell GPUs in a Bell Canada data center in British Columbia, where the infrastructure will support AI models and Cohere services for enterprise and government customers.
Once operational, HIVE expects the project to generate approximately $70 million in contracted annual recurring revenue, increasing its contracted HPC revenue target to more than $100 million, according to the company.
HIVE said it would fund the purchase of the artificial intelligence infrastructure with a portion of the proceeds from the $115 million convertible note financing that expired in April.
The company’s share price is up about 9% at the time of writing, and nearly 24% in the last month, according to Yahoo Finance data. The CoinShares Bitcoin Mining ETF (WGMI) is up 5.4% on the day and over 30% in the past month. HIVE shares are the eighth largest company in the fund.
Source: Yahoo Finance
Related: Georgia Targets Illegal Crypto Mining in Crackdown on Mestia: Report
HIVE Expands Artificial Intelligence Business as Bitcoin Shares Fall
The deal is the latest move in HIVE’s broader expansion into AI infrastructure. In May, the company said its subsidiary BUZZ HPC plans to build a 320-MW AI data center campus near Toronto, capable of supporting more than 100,000 GPUs.
Earlier this month, HIVE reported that revenue for its HPC business increased to $19.5 million in fiscal 2026, almost double the year-earlier revenue. The company also reported that contracted annual recurring operating revenues reached $35 million, supported by Nvidia-powered GPU cluster deployments and modern enterprise contracts.
HIVE also saw its Bitcoin (BTC) portfolio decline, dropping to 150 BTC from 481 BTC a quarter earlier.
Source: BitcoinTreasuries.NET
Related: Nvidia’s $20 billion debt boom boosts Bitcoin miners’ artificial intelligence
Hashrate decreases as investment in artificial intelligence increases
On Thursday Energy Mag (formerly The Miner Mag) excellent that Bitcoin mining difficulty, a measure of miners’ difficulty in producing modern blocks, dropped 10.09% on June 14, one of the largest downward adjustments in the history of the network.
The publication attributed the decline to weaker mining economics, the decline in the price of Bitcoin, seasonal energy supply constraints in Texas and broader energy market dynamics. It has also been argued that miners devoting energy to AI and HPC projects could alter future hashrate growth by reducing the amount of power available to mine Bitcoin.
Bitcoin mining difficulty. Source: Coinwarz.com
The decline comes days after Cointelegraph reported that Bitcoin mining profitability has fallen to a record low, making it tough for some operators to remain profitable.
Meanwhile, miners continue to expand into artificial intelligence and high-performance computing. IREN completed its acquisition of Spanish data center developer Nostrum Group on Tuesday, and TeraWulf recently added a development facility in Kentucky that it says could eventually support more than 1 gigawatt of AI and HPC computing power.
Warehouse: Does “Paper Bitcoin” mean an unlimited supply of BTC?
