Hive's Buzz signs $30M (U.S.) in AI cloud contracts

Executive Summary

• Hive Digital Technologies’ Buzz High Performance Computing platform signed customer agreements totaling approximately $30 million in contract value for a two‑year term.
• The initial phase will deploy 504 liquid‑cooled Dell GPUs at the Canada West site, expected to be online by Q1 2026 and generate roughly $15 million of annual recurring revenue (ARR) once fully operational.
• Management projects total HPC segment ARR to rise from about $20 million today to ~$35 million after full deployment, with a longer‑term vision of ≈ $140 million in ARR across the next year.

Key Details

• Contract Value: ~US$30 M over two years, subject to performance obligations and deployment milestones.
• Deployment Schedule: First 504‑GPU phase to be operational by the quarter ending March 31 2026 (Q1 2026).
• Revenue Impact – Phase 1: Expected $15 M annual recurring revenue from the initial GPU cluster once fully online.
• Full‑Phase Revenue Outlook: HPC segment ARR projected to increase from ~US$20 M (current) to ~US$35 M after complete rollout of Buzz’s AI‑optimized GPU capacity.
• Capital Expenditure: Funding required for GPU acquisition, electrical and cooling infrastructure, and working capital; anticipated capex higher than Tier‑1 hash‑rate facilities (industry benchmark ≈ US$70 M for comparable Tier‑3 build).
• Financing Strategy: Vendor financing arrangements for GPUs and strategic Tier‑3 data‑centre partnerships to reduce upfront capital intensity.
• Long‑Term ARR Target: Management aims for approximately US$140 M in annual recurring revenue from the HPC GPU AI cloud business within the next year, contingent on successful deployment and market conditions.
• Geographic Expansion: Buzz’s AI‑cloud platform will eventually span Canada, Sweden, and Paraguay; initial focus on Canada West with Dell and Bell Canada as key partners.
• Recognition: Buzz was recently rated bronze in SemiAnalysis’s ClusterMAX report for data‑centre network speed.

Notable Quotes

“Our vision is to scale our HPC GPU AI cloud business toward approximately $140 million in ARR over the next year… The initial 504‑GPU deployment is already backed by executed customer agreements, representing approximately $30 million in total contract value.” – Aydin Kilic, President & CEO, Hive Digital Technologies

“Buzz was recently recognized by SemiAnalysis for having one of the fastest data centre networks globally and earned a bronze rating in their ClusterMAX report.” – Craig Tavares, President & COO, Buzz HPC