HIVE stock jumps 13% on Nvidia-linked $350M AI deal

HIVE stock jumps 13% on Nvidia-linked $350M AI deal

Mon, August 17, 2026 at 7:30 PM GMT+3 2 min read

• HIVE +17.10%
• BTC-USD +1.46%

HIVE Digital Technologies (Nasdaq: HIVE) shares rose about 13% in premarket trading on Aug. 17 after the Bitcoin mining and AI company announced a major new AI infrastructure contract, extending a rally that began with last week's earnings.

HIVE Digital, founded in 2017, mines bitcoin with renewable energy and runs a growing AI computing business through its subsidiary BUZZ HPC.

The company said BUZZ HPC has signed a five-year GPU cloud services agreement with an unnamed "investment-grade enterprise customer."

Related: HIVE reports 74% revenue jump in fiscal Q1 2027 earnings

What the deal is worth

The contract carries a total value of about $350 million over five years and adds roughly $70 million in annualized recurring revenue, HIVE said.

That lifts BUZZ HPC's total annualized revenue to about $180 million, a meaningful step toward the roughly $200 million year-end target the company reaffirmed in last week's earnings report.

Under the agreement, BUZZ HPC will build a dedicated AI cluster of 2,016 NVIDIA Blackwell Ultra GPUs at a facility in Merritt, British Columbia, powered entirely by renewable hydroelectric energy.

The system is expected to go live in the fourth quarter of this year, at which point HIVE said its daily AI and high-performance computing revenue would reach about $500,000.

Executive chairman Frank Holmes tied the contract to HIVE's broader model. "What excites me most is the synergy between our two businesses," he said, explaining that whether HIVE deploys mining chips or AI GPUs, its core expertise stays the same: securing renewable energy and converting it into valuable computing power.

He said the company has the potential to bring more than 120,000 GPUs online over the next two years.

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How the economics work

HIVE expects to spend about $185 million deploying the cluster and will receive an upfront deposit of roughly $35 million, about 10% of the contract's value, from the customer.

President and CEO Aydin Kilic said the five-year term and the deposit "support an attractive economic and return profile," adding that HIVE is using proceeds from a June 2026 convertible bond and debt financing to fund the GPUs.

Building on a mixed quarter

The deal follows HIVE's fiscal first-quarter results, released last week, in which revenue jumped about 74% year over year to $79.1 million on strong bitcoin mining and AI growth.

That quarter also carried a $142.9 million net loss, driven largely by a one-time, non-cash charge tied to a contested tax assessment in Sweden.

The new contract adds to the AI-focused growth story management has been emphasizing, as HIVE positions itself as a provider of what it calls sovereign AI cloud infrastructure for Canada and beyond.

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This story was originally published by TheStreet on Aug 17, 2026, where it first appeared in the Innovation section. Add TheStreet as a Preferred Source by clicking here.