HIVE books $600 million in AI cloud contracts in 2026
Key Facts
HIVE Digital Technologies CEO Aydin Kilic said on the November 10 earnings call that the company signed three GPU Cloud service contracts during 2026, with a total contract value of $600 million. The figure represents the value of the contracts over their terms, not revenue earned during the year. In its second-quarter results, the company announced two major agreements among these contracts, valued at about $225 million and $350 million. It did not disclose the value of the third contract in the announcement. In its November 9 earnings statement, it said GPU Cloud contracted annualized revenue was about $185 million, but only about $40 million of that was currently running.
The first agreement, which HIVE described as sovereign, runs for three years with Bell AI Fabric to support Cohere and includes 2,304 NVIDIA GB200 NVL72 units. The second agreement runs for five years with an investment-grade enterprise customer and includes 2,016 NVIDIA GB300 NVL72 units. The company values the second contract at about $350 million over its term. These arrangements show the scale of computing capacity HIVE will provide through its AI cloud business. However, the contract value does not all convert into operating revenue as soon as the agreements are signed.
The company said contracted annualized revenue of about $185 million includes capacity that has not yet entered service, and therefore does not equal revenue currently recognized. Current GPU Cloud annualized revenue is about $40 million, the measure closest to ongoing operations. The gap between the two figures puts execution and deployment at the center of tracking the expansion, alongside the company's ability to finance the components and secure customer acceptance. In the second fiscal quarter, ended September 30, 2026, HIVE's total revenue was $84.9 million, up 7.3% from the previous quarter and down 2.7% year over year. The quarterly results therefore combine sequential revenue growth with a limited annual decline, alongside expansion in high-performance computing.
Revenue at BUZZ HPC, its high-performance computing arm, rose to $8.8 million in the quarter, up 70.7% year over year and 25.3% quarter over quarter. The company attributed the growth mainly to deployment of the NVIDIA B200 cluster at its Manitoba facility, as well as strong demand and pricing across GPU markets. The executive chairman said revenue remained broadly stable year over year despite a 27% decline in Bitcoin prices, while HPC revenue increased by more than 70%. This highlights the ongoing shift in HIVE's business mix, with mining retaining a role alongside cloud computing services. The GAAP net loss was about $78.7 million in the quarter, including $54.9 million in depreciation and $31.2 million in non-cash impairment of mining equipment.
The $350 million enterprise customer agreement requires an estimated $185 million in capital expenditure for the computing cluster, equipment and related warranties, according to the company's disclosure. Deployment was expected during the first quarter of 2027 in Merritt, British Columbia. To finance the GB200 units linked to the Cohere agreement, the company secured a $129 million loan at 9% interest for three years. HIVE said it expects to ship the GB200 units before the end of 2026, with the lender's funds to be released from escrow to the GPU unit manufacturer as delivery milestones are met. The company ended the quarter on September 30, 2026, with $139 million in cash and cash equivalents and $22.6 million in digital currencies.
HIVE is targeting about $200 million in GPU Cloud contracted annualized revenue in the fourth quarter of 2026, subject to financing, market conditions, deployment schedules and customer acceptance. The CEO also said the company is targeting combined annualized revenue of $500 million from GPU Cloud services and Bitcoin mining in early 2027, noting that mining revenue changes with the hash price. The company currently operates about 440 megawatts of electrical capacity globally and expects its active footprint to reach about 540 megawatts after adding 100 megawatts in Yaguazú during the fourth quarter of 2026. EL7 data showed HIVE shares closed at $1.72 on November 10. The CEO said the company's priority is to protect its balance sheet and that it does not plan to use its at-the-market equity issuance program at current prices.