HIVE surged 9% after signing a five-year, $350M GPU cloud contract that pushes BUZZ HPC's contracted annualized revenue to $180M, nearing a $200M ARR target.
Cipher Mining rose 2% in sympathy while NVIDIA edged up just 0.8%, confirming the rally is HIVE-specific rather than a broader sector rotation.
The cluster targets $500K per day in HPC and AI revenue, but $185M in capex still needs full funding before contracted revenue converts to cash.
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HIVE Digital Technologies (NASDAQ:HIVE) shares are up 11% to $2.98 in midday trading Monday, jumping from Friday's $2.69 close after the bitcoin miner unveiled its largest AI contract to date. The catalyst is company-specific, keeping peer names and the broader miner group largely flat.
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HIVE stock remains down 16% for the month, though it's still up 4% year to date (YTD) and up 20% over the past year. The market cap sits at $883.85 million.
The catalyst is a five-year, $350 million GPU cloud services agreement signed through HIVE's BUZZ High Performance Computing subsidiary. The deal puts HIVE's $200 million annualized recurring revenue goal for the GPU cloud business within reach and validates the bitcoin-miner-to-AI-compute pivot investors have been pricing in.
A $350 Million AI Contract
HIVE signed the five-year GPU cloud services agreement with an unnamed investment-grade enterprise customer. The deal is expected to generate approximately $70 million in annualized revenue and brings BUZZ HPC's total annualized revenue to $180 million, blending $35 million in active realized annualized revenue with $145 million in contracted revenue expected to come online through the fourth quarter of 2026.
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BUZZ HPC will deploy a dedicated cluster of 2,016 NVIDIA (NASDAQ:NVDA) Blackwell Ultra GPUs in NVIDIA GB300 NVL72 rack-scale systems at the Bell AI Fabric facility in Merritt, British Columbia. The cluster uses NVIDIA Quantum-X800 InfiniBand networking and VAST Data's storage platform, powered by renewable hydroelectric energy with closed-loop liquid cooling (we profiled seven of the power, cooling, and networking suppliers behind builds like this in a free AI infrastructure report).
Capital expenditures for the deployment total $185 million, sizable against a market cap under $1 billion. The customer is providing an upfront deposit of $35 million, 10% of total contract value. CEO Aydin Kilic indicated the funding mix draws from HIVE's zero-coupon convertible bond issued in June, debt financing, and additional equipment financing.
Executive Chairman Frank Holmes described the deal as "another important milestone in that journey" of applying HIVE's ASIC and data center scaling experience to GPU-based AI. Holmes added, "with approximately 400 MW of capacity in Canada for Tier III data center development, we have the potential to bring over 120,000 GPUs online over the next 2 years."
Kilic stated HIVE is accelerating "towards our year-end target of $200 million of ARR for our GPU cloud business" and that "the five-year term, expected stable cash flows from an investment-grade enterprise customer, and upfront deposit of approximately 10% of total contract value supports an attractive economic and return profile for this deployment."
Peers Barely Budge
Cipher Mining (NASDAQ:CIFR) shares are up 2% to $18.13, a modest sympathy move for a fellow bitcoin miner building industrial-scale HPC data centers for hyperscale tenants. Cipher Mining stock is up 4% for the week, up 21% YTD, and up 236% over the past year.
NVIDIA shares are up 0.8% to $227.05, barely moving despite NVIDIA's role as the GPU supplier for HIVE's Blackwell Ultra deployment. NVIDIA stock is up 21% YTD, and a $350 million cluster order is a rounding error against a market cap north of $5.4 trillion.
The Miner ETF Read
The Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) is up 2% to $49.38, confirming this is a company-specific catalyst rather than a sector rotation. The ETF is up 27% YTD but down 8% over the past month, lagging HIVE's 9% jump.
The Valkyrie Bitcoin Miners ETF is a narrow thematic vehicle concentrated in bitcoin miners and carries meaningful concentration risk. Today's muted response reflects a group trading flat around HIVE's news.
What to Watch
The cluster is expected to be operational later this year, with HIVE guiding to $500,000 per day in HPC and AI daily revenue once deployed. Investors can watch for whether that revenue rate materializes on schedule and whether the enterprise customer is ever identified.
HIVE held about $11 million of bitcoin on its balance sheet against a cash position of $208 million as of its fiscal first-quarter 2027 report. Bitcoin (CRYPTO:BTC) was priced near $63,200 Monday morning, with traders watching for a move below $63,000, which reinforces why the AI revenue line now matters more to this story than the mining side.
The remaining questions are execution and financing. This is contracted future revenue that still needs to convert to revenue in hand, and the $185 million buildout still needs to be funded across convertible debt and equipment financing. Market watchers can watch for progress toward the $200 million ARR target by year-end and the next update on the funding stack, and investors may want to size their positions with that execution risk in mind.
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