Canadian Bitcoin miner HIVE Digital Technologies announced that its AI subsidiary BUZZ HPC has executed a three-year GPU cloud infrastructure agreement valued at approximately $220 million. The contract involves Bell AI Fabric and serves the AI startup Cohere, marking a significant escalation in HIVE's strategic pivot toward high-performance computing (HPC) and artificial intelligence infrastructure. Under the terms of the deal, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell GPUs at a Bell Canada data center located in British Columbia. This infrastructure is designated to support Cohere's artificial intelligence models and services, specifically targeting enterprise and government customer segments. Once the deployment enters active service, HIVE projects the project will generate approximately $70 million in contracted annual recurring revenue, elevating the company's total contracted HPC revenue target to exceed $100 million. Data compiled by Woofun AI indicates that HIVE intends to fund the acquisition of this AI infrastructure using proceeds from a $115 million convertible note financing completed in April.

Market reaction to the announcement was immediate, with HIVE's stock price rising around 9% at the time of reporting and climbing nearly 24% over the preceding month.

Concurrently, the CoinShares Bitcoin Mining ETF (WGMI), which tracks the sector, gained 5.4% on the day and more than 30% in the past month, with HIVE stock representing the fund's eighth-largest holding. This transaction represents the latest milestone in HIVE's broader expansion into AI infrastructure, following a May announcement that BUZZ HPC planned a 320-megawatt AI data center campus near Toronto. That facility is designed to support more than 100,000 GPUs, signaling a massive scaling ambition. Earlier this month, HIVE reported that revenue from its HPC division reached $19.5 million in fiscal 2026, nearly doubling compared to the prior year. The company attributed this growth to deployments of Nvidia-powered GPU clusters and new enterprise contracts, noting that contracted annual recurring revenue from the business had reached $35 million.

Despite the surge in HPC activity, HIVE reported a contraction in its Bitcoin (BTC) treasury holdings, which declined to 150 BTC from 481 BTC a quarter earlier. This reduction in on-chain assets coincides with broader challenges facing the Bitcoin mining sector. On Thursday, The Energy Mag noted that Bitcoin mining difficulty, a metric measuring the computational effort required to produce new blocks, fell 10.09% on June 14. This represented one of the largest downward adjustments in the network's history. The publication attributed the decline to weaker mining economics, a drop in Bitcoin's price, seasonal power curtailment in Texas, and broader power-market dynamics. Woofun AI observes that miners dedicating power to AI and HPC projects could fundamentally alter future hashrate growth by reducing the capacity available for Bitcoin mining operations.

The difficulty adjustment occurred days after reports indicated that Bitcoin mining profitability had fallen to record lows, creating existential pressure on operators to remain solvent. In response to these economic headwinds, miners are accelerating their diversification into AI and high-performance computing. On Tuesday, IREN completed its acquisition of Spanish data center developer Nostrum Group, while TeraWulf recently added a Kentucky development site. TeraWulf stated that this new location could eventually support more than 1 gigawatt of AI and HPC capacity. Woofun AI analysis suggests that as traditional mining margins compress, the strategic reallocation of capital and power toward AI infrastructure will become a defining trend for the industry's next growth cycle.