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Hive AI Cloud Surges on Major GPU Contract
26 Jun
Summary
- Hive's BUZZ subsidiary secured a $30 million GPU contract.
- BUZZ AI cloud revenue is projected to reach $225 million by 2026.
- The company reported a significant 230% revenue growth last quarter.
Hive Digital Technologies, initially a Bitcoin miner, is rapidly expanding its AI cloud services through its BUZZ High-Performance Computing subsidiary. BUZZ has entered into a significant two-year contract valued at $30 million for 504 B200 GPUs, deployed at its Canada West facility. This agreement is anticipated to increase BUZZ's annualized recurring revenue by approximately 75% and is diversified across multiple clients.
Management has projected total HPC annual recurring revenue to reach $225 million by the close of 2026. BUZZ has also forged a partnership with AMC Robotics Corporation, underscoring its capability to serve diverse industries. Additionally, a strategic collaboration with Bell Canada has enhanced Hive Digital's infrastructure with high-speed fiber connections, positioning it as a leading AI compute facility in Eastern Canada.
Recent financial disclosures reveal substantial growth for Hive Digital, with quarterly revenue surging by approximately 230%. The company also saw its gross operating margin expand by 14 percentage points year-over-year, reaching 36%, a notable achievement given market volatility.
