A Bitcoin miner turned artificial intelligence infrastructure provider has landed a five-year, $350 million cloud services agreement, signaling how quickly the pivot from crypto mining to AI computing is accelerating across the industry.
HIVE Digital Technologies announced that its subsidiary, BUZZ High Performance Computing, signed the deal with an investment-grade enterprise customer. The contract adds approximately $70 million in annualized revenue, bringing BUZZ HPC's total annualized revenue to roughly $180 million. The agreement covers a dedicated AI infrastructure cluster featuring 2,016 NVIDIA Blackwell Ultra GPUs in NVIDIA GB300 NVL72 rack-scale systems, interconnected with NVIDIA Quantum-X800 InfiniBand networking and supported by VAST Data's high-performance storage platform.
Renewable Energy Meets AI Computing
The cluster is expected to become operational later this year at the Bell AI Fabric facility in Merritt, British Columbia. The facility is powered entirely by renewable hydroelectric energy and uses advanced closed-loop liquid cooling technology, eliminating ongoing water consumption for cooling. This combination of sustainable power and cutting-edge GPU architecture positions HIVE among a growing group of former crypto miners leveraging their energy infrastructure expertise for AI workloads.
The company expects capital expenditures for the deployment to total approximately $185 million, with the customer providing an upfront deposit of about $35 million, or 10% of the total contract value. Upon full deployment, HIVE's HPC and AI daily revenue is projected to reach approximately $500,000.
From Bitcoin Hashpower to GPU Cloud
Executive Chairman Frank Holmes noted that just a year ago, the team was focused on scaling ASIC computing power and Tier-I data center footprint by over 300%. Today, that same discipline is being applied to GPU-based AI infrastructure. The company has approximately 400 megawatts of capacity in Canada available for Tier III data center development, with the potential to bring over 120,000 GPUs online over the next two years.
President and CEO Aydin Kilic described the agreement as a significant step toward the company's year-end target of $200 million in annualized revenue for its GPU cloud business. The five-year term and investment-grade customer profile provide stable, long-term cash flows with an attractive return on invested capital, supported by debt financing from a June 2026 convertible bond.
A Broader Industry Shift
The deal reflects a wider trend of publicly listed bitcoin miners reallocating computing power from crypto mining to AI infrastructure. As mining margins compress and AI demand surges, companies with existing data center footprints and energy contracts are uniquely positioned to capture the growing market for accelerated computing. You can read more about how miners are shifting capacity toward AI in our coverage of Bitcoin miners pivoting to AI infrastructure.
The contract also highlights the increasing importance of sovereign AI infrastructure, with governments and enterprises seeking domestic computing capacity rather than relying on foreign cloud providers. BUZZ HPC is positioning itself as one of Canada's leading sovereign AI cloud providers, combining NVIDIA accelerated computing with partnerships like Bell and VAST Data to deliver enterprise-grade AI compute at scale.
What This Means for Crypto Investors
For investors tracking the convergence of crypto and AI, HIVE's agreement demonstrates that the infrastructure overlap between the two sectors is producing real, contracted revenue rather than just narrative. The $350 million total contract value provides revenue visibility that pure-play miners cannot match, and the company's dual strategy of running both ASIC mining and GPU cloud services offers diversification against crypto price volatility.
As more miners follow this path, the Bitcoin network's security model could be affected by reduced hashpower, though the impact so far has been limited. The broader question is whether AI demand will continue to absorb the computing capacity that miners are redirecting, or whether the market will eventually face oversupply as new data centers come online.
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