HIVE Digital Technologies said its active and contracted GPU Cloud annual recurring revenue has reached approximately $110 million, up from about $35 million of GPU Cloud ARR currently live, after the company secured a major sovereign artificial intelligence infrastructure agreement involving Bell AI Fabric and Cohere.
The company disclosed the figure on August 15, 2026, when it reported results for the first quarter of fiscal 2027, ended June 30. HIVE said the new agreement adds approximately $75 million in annual recurring revenue and covers the planned deployment of 2,304 NVIDIA GB200 NVL72 GPUs. The company’s latest figures put the total value of the three-year agreement at approximately $225 million.
The $110 million figure does not represent $110 million of revenue already recognized in HIVE’s financial statements. About $35 million represents GPU Cloud ARR that is currently live, while the remaining approximately $75 million is tied to contracted capacity that is still being deployed. HIVE said the GB200 deployment is expected to go live in late 2026 to early 2027.
The June announcement originally described the agreement as a roughly $220 million, three-year contract and said it would add about $70 million of contracted ARR to HIVE’s then-current $35 million of realized GPU Cloud ARR. The company subsequently reported higher rounded figures in its August results.
HIVE’s BUZZ High Performance Computing subsidiary signed the agreement with Bell AI Fabric to provide the GPU infrastructure supporting Cohere’s artificial intelligence workloads for Canadian government and corporate customers. The infrastructure is being deployed at Bell’s purpose-built facility in Merritt, British Columbia.
The planned systems consist of 2,304 NVIDIA Grace Blackwell GPUs configured as GB200 NVL72 rack-scale systems, interconnected using NVIDIA Quantum InfiniBand networking. HIVE said the infrastructure is being built to NVIDIA reference architecture standards and will use advanced liquid cooling.
Bell said the partnership brings together Bell AI Fabric’s data-center and connectivity infrastructure, Cohere’s enterprise AI and large language model capabilities, BUZZ HPC’s GPU infrastructure and Hypertec’s Canadian-manufactured hardware. The companies said the arrangement is intended to support advanced AI workloads on Canadian infrastructure and reinforce Canada’s digital sovereignty.
For HIVE, the new contract follows an earlier expansion of its GPU Cloud business. The company said it entered fiscal 2027 with approximately $35 million of contracted GPU Cloud ARR after bringing a 504-GPU NVIDIA B200 cluster online in Manitoba in May 2026. That earlier cluster was associated with a two-year contract with a total value of approximately $30 million and was expected to contribute about $15 million in annual recurring revenue.
HIVE’s GPU business had previously generated approximately $20 million in annualized contracted revenue before the B200 deployment increased its GPU Cloud ARR to about $35 million. The company’s fiscal 2026 filing said the earlier business included contracted and on-demand GPU capacity, including H200 GPUs and other A-series and H-series systems.
The expansion is occurring alongside growth in HIVE’s broader high-performance computing operation. For the June quarter, HIVE reported $7.1 million in HPC revenue, up 46.7% from a year earlier and 52.1% sequentially. That figure is separate from the company’s approximately $110 million active and contracted GPU Cloud ARR because ARR is an annualized run-rate measure rather than the amount of revenue recognized during the quarter.
HIVE reported total first-quarter fiscal 2027 revenue of $79.1 million, an increase of 73.5% from the same quarter a year earlier and 10.2% sequentially. Digital currency revenue accounted for $72.1 million, while gross operating margin was $24.2 million and adjusted EBITDA was $13.4 million.
The company nevertheless recorded a GAAP net loss of $142.9 million. HIVE said the loss was primarily affected by non-cash charges, including an $84.7 million provision related to regulatory liabilities, $53.7 million of depreciation, $7.1 million of share-based compensation and a $7.1 million change in the fair value of derivatives.
The $84.7 million provision relates to previously disclosed Swedish VAT assessments. HIVE said the assessments primarily concern the deductibility of input VAT associated with equipment and other expenditures used in its hashrate-services operations, including ASIC mining equipment, for periods beginning in 2023. The company said it is contesting the assessments and pursuing further legal remedies in Sweden.
Beyond the $110 million of active and contracted GPU Cloud ARR, HIVE said it has signed a letter of intent for long-term colocation at its 32 MW Big Boden facility in Sweden. The company estimates the potential opportunity at approximately $45 million in annual colocation revenue. Because the arrangement is based on an LOI rather than a completed contract, HIVE does not include that $45 million in its contracted GPU Cloud ARR figure.
Including the potential Big Boden opportunity, HIVE said its HPC and AI ARR pipeline is approximately $155 million. The company is targeting approximately $200 million in GPU Cloud ARR by the fourth quarter of calendar 2026, subject to market conditions and successful deployment.
HIVE has also outlined a longer-term target of approximately $700 million in total HPC ARR by the end of 2028. The company points to a development pipeline that includes 70 MW in New Brunswick, Toronto, Little Boden and a planned 320 MW gigafactory in the Greater Toronto Area.
The planned GTA facility is part of HIVE’s broader effort to expand its data-center capacity for AI and high-performance computing. HIVE has said the 320 MW project could accommodate more than 100,000 NVIDIA GPUs at full build-out and has previously targeted operation from the second half of 2027. Its earlier corporate materials projected approximately $360 million of annualized recurring revenue from 200 MW of IT load under a long-term Tier-III colocation model.
HIVE currently says it has approximately 440 MW of global power capacity. It expects that figure to reach about 540 MW after an additional 100 MW power purchase agreement at its Yguazú site in Paraguay is energized in the fourth quarter of calendar 2026. The company said that capacity remains unallocated and could ultimately be directed toward Bitcoin mining, artificial intelligence or high-performance computing.
The GPU expansion is also being financed through the capital markets. HIVE raised $115 million through 0% exchangeable notes in April and later completed a $130 million offering of 0% exchangeable senior notes due 2031, including the exercise of a $15 million option. The company said proceeds from the financings would support GPU purchases, data-center development, capital investment and general corporate purposes.
The rise to approximately $110 million in active and contracted GPU Cloud ARR therefore represents a significant increase from the roughly $20 million level earlier in fiscal 2026 and the approximately $35 million of live ARR before the new Bell AI Fabric agreement. Much of the latest increase, however, remains tied to infrastructure that has yet to enter service.
HIVE’s latest disclosure defines ARR as an annualized run-rate revenue measure calculated from realized revenue or contracted services. The company cautions that ARR projections may not accurately predict future revenue because they generally do not account for possible cancellations, discounts or service downgrades.
The immediate test for HIVE will be the deployment of the 2,304 GB200 GPUs and the conversion of the newly contracted capacity into operating GPU Cloud revenue. For now, the company’s reported figures show a GPU Cloud business with approximately $35 million of live ARR and another approximately $75 million in contracted ARR, taking the active and contracted total to approximately $110 million.
For additional background, HIVE’s investor-relations materials provide its financial filings and corporate disclosures, while Cohere’s Bell partnership announcement provides context on the companies’ broader sovereign AI relationship in Canada.
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