Hive shares jump 10% on $220m Canada sovereign AI infrastructure deal

HIVE Digital Technologies shares jumped 10% in pre-market trading on Thursday after the company announced a $220 million, three-year GPU cloud contract with Bell Canada and AI firm Cohere. The deal marks a significant step in HIVE's transition from a pure-play bitcoin miner to a diversified high-performance computing provider.

The contract will see HIVE's BUZZ High Performance Computing unit deploy 2,304 Nvidia Grace Blackwell GPUs at Bell's AI Fabric facility in Merritt, British Columbia. This infrastructure will serve as the dedicated compute layer for Cohere's enterprise AI models, which are used by Canadian government and corporate clients. All infrastructure will remain on Canadian soil, aligning with Ottawa's push to reduce reliance on foreign-controlled AI technology. For crypto traders, this development highlights the growing convergence between bitcoin mining infrastructure and AI cloud services, a trend that could reshape the valuation models of mining stocks. NowPrice's real-time crypto quotes show bitcoin trading flat on the day, but HIVE's stock move underscores the market's appetite for miners with AI exposure.

Looking ahead, investors will watch for further details on the revenue contribution from this contract and potential expansion of the partnership. The deal also raises questions about how other bitcoin miners with similar GPU capabilities might pivot toward AI workloads, especially as the next bitcoin halving approaches in 2028. HIVE's ability to secure a sovereign AI contract could set a precedent for other mining firms seeking to diversify their revenue streams.