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HIVE’s BUZZ needs $185 million in GPU builds to deliver AI deal
HIVE expects the five year contract to generate about $70 million in annualized revenue once the GPU infrastructure is deployed in late 2026, after only about $35 million of ARR is currently active.
HIVE Digital Technologies’ BUZZ High Performance Computing unit secured a five year, $350 million AI cloud contract with an unnamed investment grade enterprise customer, but most revenue depends on completing a large GPU buildout. According to CryptoSlate, the agreement requires a $185 million deployment of 2,016 NVIDIA Blackwell Ultra GPUs in GB300 NVL72 systems at HIVE’s Bell AI Fabric facility in Merritt, British Columbia, targeted for calendar Q4 2026.
The customer is set to provide an upfront deposit of about 10% of the contract value, roughly $35 million, though HIVE has not disclosed whether that payment has already been received. CryptoSlate reports HIVE plans to rely on existing financing and additional equipment funding to cover the remaining buildout cost, after raising $130 million from zero percent exchangeable senior notes in June and $245 million from zero percent notes during the quarter.
CryptoSlate also notes that the deal lifts BUZZ’s reported annual recurring revenue to about $180 million, but only around $35 million is currently active, with another $145 million expected to come online through the fourth quarter. Once the infrastructure is operating, HIVE expects its HPC and AI business to generate about $500,000 of daily revenue.
HIVE defines ARR as annualized weekly, daily, or quarterly revenue rather than reported revenue, and warns that projected figures may not reflect future cancellations, discounts, or service reductions. CryptoSlate says the company recently reported $208 million of cash, without disclosing how much is earmarked for the GPU deployment, leaving execution risk tied to securing remaining financing and commissioning on schedule.