Bitcoin miner and data center operator HIVE has signed $30 million in AI cloud contracts through its subsidiary, BUZZ High Performance Computing, per a Thursday press release. The agreements span a two-year fixed term and cover deployment at the company’s Canada West facility.
The deal involves 504 liquid-cooled Dell server GPUs aimed at AI/HPC workloads. Management expects this initial phase to generate approximately $15 million in annual recurring revenue. Once fully deployed, HIVE projects total annualized revenue for the HPC segment will rise from $20 million to $35 million.
Hive expects to deploy the cluster this quarter, which will total 504 GPUs once installed. CEO Aydin Kilic said that the company is targeting 2,000 GPUs deployed by year end.
Executive Chairman Frank Holmes noted that Tier-III facilities require significantly higher capital than Tier-I mining sites. While Tier-I infrastructure typically costs $1 million per megawatt, comparable self-funded Tier-III facilities can require nearly $70 million in total spend depending on market conditions. HIVE is utilizing vendor financing and strategic partnerships to mitigate these upfront costs.
The news follows a previous update where HIVE highlighted a “global arms race” for compute power while maintaining its cryptocurrency mining operations. Holmes described the approach as a “dual-engine strategy” leveraging both hashrate services and high-performance computing.
“We are pursuing selective Tier-III conversions and colocation strategies for HPC,” Holmes said.
