HIVE's $220M Deal Boosts Shares 10% — Canada AI Expansion
By John Nada·Jun 19, 2026·3 min read
HIVE Digital Technologies shares rose 10% on a $220M deal with Bell Canada and Cohere, marking a shift towards AI infrastructure.
HIVE Digital Technologies shares soared 10% in pre-market trading after announcing a substantial $220 million, three-year GPU cloud contract with Bell Canada and AI firm Cohere. This ambitious agreement anchors HIVE's transition away from traditional bitcoin mining into high-performance computing.
The massive deployment of 2,304 Nvidia Grace Blackwell GPUs will occur at Bell's AI Fabric facility in Merritt, British Columbia, serving as the dedicated compute layer for Cohere's enterprise AI models. This strategic move aligns with Ottawa's broader initiative to foster domestically controlled AI infrastructure, insulating against foreign dependency as detailed by CoinDesk.
From late 2026 to early 2027, this infrastructure is expected to generate approximately $70 million in annual recurring revenue, significantly amplifying HIVE's contracted HPC revenue over $100 million, marking a monumental pivot in their commercial strategy. With $35 million already realized in annual recurring revenues, HIVE's journey towards becoming a pivotal player in high-performance computing is well underway.
The partnership with Bell Canada and Cohere is not just a financial agreement; it is a profound step into the realm of AI infrastructure, which is becoming increasingly critical in today's digital age. This collaboration signifies a commitment to developing a robust, Canadian-based AI infrastructure, providing a competitive edge against foreign technology giants.
The deployment of Nvidia's advanced GPUs is a testament to HIVE's strategic foresight. These GPUs are designed to handle complex AI tasks, making them ideal for supporting Cohere's enterprise AI models. This ensures that Canadian government and corporate clients have access to cutting-edge technology, bolstering their capabilities in AI-driven projects.
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Furthermore, the decision to keep all infrastructure on Canadian soil is a strategic maneuver that aligns with national interests. In a world where data sovereignty is becoming increasingly important, having AI infrastructure that is locally controlled helps mitigate risks associated with foreign dependency. This move is likely to resonate well with Canadian policymakers who are keen on promoting technological independence.
HIVE's BUZZ unit, which is responsible for high-performance computing, is gearing up for this large-scale deployment. The anticipation surrounding this development is palpable, as stakeholders across various sectors are eager to see how this will redefine HIVE's business model. This shift not only enhances HIVE's revenue streams but also positions the company as a formidable player in the AI infrastructure landscape.
The implications of this deal extend beyond HIVE's immediate financial gains. It represents a broader trend within the tech industry where companies are transitioning from traditional operations, like bitcoin mining, to more sustainable and forward-looking ventures such as AI. This transition is critical as it reflects the evolving needs of the market and the growing demand for high-performance computing capabilities.
The Canadian government's support for this initiative is a reflection of its proactive approach to fostering a robust AI ecosystem. By investing in domestic infrastructure, Canada is positioning itself as a leader in the AI sector, which is expected to drive significant economic growth in the coming years. This move not only benefits HIVE but also contributes to Canada's broader economic and technological objectives.
As HIVE embarks on this new journey, the tech community is watching closely. The success of this venture could potentially pave the way for other companies to follow suit, further solidifying Canada's position as a hub for AI innovation. The collaboration with industry giants like Bell Canada and Cohere underscores the importance of strategic partnerships in achieving these ambitious goals.