HIVE Digital Technologies built its name mining Bitcoin. A growing share of its story now runs through BUZZ HPC, its subsidiary that rents out computing power for artificial intelligence work
HIVE Digital Technologies built its name mining Bitcoin. A growing share of its story now runs through BUZZ HPC, its subsidiary that rents out computing power for artificial intelligence work.
On Oct. 27, HIVE said BUZZ HPC secured a loan of about $129 million to buy 2,303 Nvidia GB200 graphics processing units (GPUs), the chips used to train and run AI models.
The full cluster costs about $165 million, so the loan covers roughly 80% of the price.
The three-year loan carries a fixed 9% annual interest rate and comes from an unnamed institutional lender. It is secured by the GPUs themselves.
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HIVE says the loan will be repaid from revenue under its three-year, fixed-term contract with AI customer Cohere, first announced in June.
Once the loan is paid off, HIVE will own the chips outright.
HIVE President and CEO Aydin Kilic put the Cohere deal at $225 million in total contract value.
That figure includes computing power plus connectivity and storage. HIVE had earlier disclosed $220 million for computing alone.
Cohere is one of several such customers.
“We have signed $600 million of TCV for GPU cloud deals this year, across three GPU off-take contracts,” Kilic said.
Off-take contracts are agreements in which customers commit to buying a set amount of capacity.
HIVE is funding the remainder of the cluster’s cost with money from 0% interest convertible bonds it issued earlier this year, Kilic said.
Convertible bonds are debt that investors can later swap for company shares. HIVE says it issues no new shares as part of this financing.
Executive Chairman Frank Holmes tied the purchase to a broader goal.
“We believe sovereignty in the AI era will depend on where compute lives and who controls it,” he said.
The new GPUs are expected to arrive toward the end of the fourth quarter of 2026.
At the time of writing on Nov. 4, HIVE’s Nasdaq-listed shares were trading at $1.84, up 1.75% on the day.
Analysts tracking the stock have mostly stayed bullish. On Oct. 19, Canaccord Genuity reiterated its Buy rating and $10 price target, the highest on Wall Street.
That target implies upside of more than 440% from current levels. H.C. Wainwright and Rosenblatt Securities also rate HIVE a Buy, with targets of $7 and $6.
Most recently, on Nov. 2, Keefe, Bruyette & Woods, the investment bank owned by Stifel, kept its Hold rating and set a $2.50 target. KBW lowered that target from $4.50. Even so, KBW’s target sits about 36% above the current price.
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