HIVE Secures Nearly $129 Million Credit Facility at Fixed 9% Interest
Key Facts
HIVE announced on October 27 that its indirectly owned subsidiary BUZZ Alpha Cloud had entered into a loan and security agreement with an institutional lender for a credit facility of nearly $129 million. The financing carries a fixed annual interest rate of 9.0% over 3 years, with principal and interest to be repaid in installments during the loan term. The company says the funds will be used to purchase an advanced sovereign computing cluster and related infrastructure, including NVIDIA GB200 NVL72 systems. The systems will be dedicated to delivering services under the 3-year sovereign artificial intelligence contract with Cohere. The announcement represents financing directed toward deploying the infrastructure required for the contract, with repayment tied to its revenue.
According to HIVE, BUZZ Alpha Cloud intends to repay the facility from contract revenue under a fixed amortization schedule. The company said the financing did not include an issuance of common shares. The loan is secured by BUZZ Alpha Cloud’s GPU units and related assets, while BUZZ HPC provides a limited-recourse guarantee and pledges its interest in the borrowing company. HIVE added that BUZZ HPC has no other liability under the facility. These terms place the group’s computing assets and revenue from the Cohere contract at the center of the financing and repayment structure.
The contract dates back to HIVE’s announcement on June 18, when it said BUZZ HPC had entered into a 3-year GPU cloud computing agreement with Bell Canada and Cohere, with a total value of nearly $220 million. The company said at the time that the project would include 2,304 NVIDIA Grace Blackwell units within GB200 NVL72 systems, alongside NVIDIA Quantum InfiniBand networking. It identified Bell’s purpose-built facility in Merritt, British Columbia, as the site for deploying the sovereign cloud infrastructure and GPU cluster. HIVE said the service would provide the computing layer on which Cohere would run its foundational models and enterprise solutions. The beneficiaries named in the announcement include government customers and businesses in Canada.
The facility is part of a broader expansion of HIVE’s GPU cloud computing business. The company’s chief executive said HIVE had signed contracts worth a total of $600 million during 2026 across 3 GPU capacity purchase agreements. In its first-quarter fiscal 2027 results, for the quarter ended June 30, 2026, the company reported revenue of $79.1 million, up 73.5% year over year and 10.2% from the previous quarter. BUZZ high-performance computing revenue was $7.1 million in the same quarter, up 52.1% from the previous quarter. HIVE attributed growth in the business to deployment of the NVIDIA B200 cluster in Manitoba, as well as demand and pricing in GPU markets.
HIVE had $208 million in cash and cash equivalents on June 30, 2026, before announcing the new facility. In August, the company said it was targeting nearly $200 million in annualized GPU cloud revenue by the fourth quarter of 2026, subject to market conditions and successful deployment. It also said that month that its global operating capacity was about 440 megawatts and that it expected electrified capacity to reach about 540 megawatts after adding 100 megawatts in Yguazú during the fourth quarter. For the Cohere contract, HIVE expects to deliver the GB200 units near the end of the fourth quarter of 2026. The expected delivery date places this spending and financing within the phase of deploying infrastructure dedicated to the contract before year-end.
According to EL7 data, NVIDIA shares closed at $217.94 on October 27, 2026, compared with a close of $216 on October 26 and $210.96 on October 23. The data show the closing price rising across the three dates covered. In the financing announcement, HIVE’s chief executive said: "We signed contracts this year worth a total of $600 million for GPU cloud computing deals, across 3 GPU capacity purchase agreements." The new facility combines a fixed financing cost over 3 years with a repayment schedule the company intends to cover from Cohere contract revenue. The next announced step remains delivery of the GB200 units near the end of the fourth quarter of 2026.