HIVE Digital lands $350M GPU cloud deal as miners pivot to AI

HIVE Digital shares jumped 11 percent to $2.98 in midday trading Monday after the bitcoin miner signed a five-year, $350 million GPU cloud contract, its largest AI deal to date.

"The contract supports HIVE's strategy to expand its AI cloud platform with long-term revenue visibility and sustainable infrastructure," the company said in its announcement through subsidiary BUZZ High Performance Computing.

The deal, signed with an investment-grade enterprise customer, will deploy 2,016 NVIDIA Blackwell Ultra GPUs at the Bell AI Fabric facility in British Columbia, expected online by Q4 2026. It adds roughly $70 million in annual recurring revenue, lifting BUZZ HPC's total to about $180 million — $35 million of active realized ARR plus $145 million of contracted ARR. HIVE retains ownership of the infrastructure and expects capital expenditures of approximately $185 million, with an upfront deposit of roughly 10 percent of contract value.

The contract follows a separate three-year, $220 million AI cloud agreement HIVE signed in June, showing a broader shift among bitcoin miners to repurpose energy infrastructure for AI workloads that offer steadier revenue than mining. The company targets $200 million in annualized revenue for its GPU cloud business, with daily HPC/AI revenue of about $500,000 expected after deployment.

Miners Repurpose Power for AI Workloads

HIVE operates Tier-1 and Tier-3 data centers powered by low-cost renewable energy in Canada, Sweden, and Paraguay, infrastructure originally built for bitcoin mining. The British Columbia facility runs on hydroelectric power with advanced cooling technology, a model that has drawn other miners into AI services. Peer Cipher Mining also ticked up on the news, reflecting investor appetite for miners with AI revenue potential.

The pivot comes as bitcoin mining margins face pressure from network difficulty and price volatility. GPU cloud contracts provide multi-year revenue visibility at contracted rates, reducing exposure to crypto price swings. For HIVE, the deal lifts contracted ARR to $145 million, giving the company a clearer earnings trajectory than its mining operations alone. The company's two revenue streams — digital currency mining and HPC hosting — now tilt meaningfully toward the latter as AI demand grows.

Valuation and Market Signals

HIVE trades at a price-to-sales ratio of 2.09, below its historical median of roughly 3.3 times, according to GuruFocus data. The company's GF Value estimate of $3.88 implies the stock is about 30.5 percent undervalued at $2.69, though the metric carries caveats for a loss-making company with negative operating margin of 31.33 percent and trailing EPS of negative $0.60.

The company's GF Score of 60 out of 100 reflects strong momentum (10/10) but weak profitability (3/10) and growth (2/10) scores. Financial strength is moderate at 6/10, supported by a debt-to-equity ratio of 0.13 and current ratio of 1.1, though an Altman Z-Score of 2.86 places HIVE in a grey zone for financial stress.

Three prominent gurus hold HIVE shares, with two adding and one trimming positions in recent quarters, while insiders sold roughly $3.3 million worth of stock over the past three months with no purchases.

For investors, the deal provides revenue visibility that could support a valuation re-rating if HIVE executes on deployment. The company's market capitalization of $731 million against $180 million in projected annualized BUZZ HPC revenue implies the market is pricing in execution risk. Nvidia's Blackwell Ultra platform, which also powers competing AI cloud providers, gives HIVE access to the same hardware ecosystem as larger hyperscalers, though the company's scale remains a fraction of major cloud players. The contract's investment-grade counterparty and 10 percent upfront deposit reduce counterparty risk, while the five-year term provides a stable cash flow base through 2031.

This article is for informational purposes only and does not constitute investment advice.