Bitcoin Miner HIVE Signs $350M AI Cloud Deal, Adds $70M ARR

HIVE’s $350M GPU cloud deal adds $70M ARR

In its news release, HIVE said the five-year agreement has approximately $350 million in total contract value. It expects the contract to add approximately $70 million in annualized revenue, a run-rate measure rather than cash already recognized as revenue.

HIVE defines annualized revenue by annualizing weekly, daily or quarterly revenue, depending on the context. Its release says that measure can be an unreliable predictor of future results because it may not account for later cancellations, discounts or customer downgrades.

The new cluster is planned to use 2,016 NVIDIA Blackwell Ultra GPUs in GB300 NVL72 rack-scale systems, linked by NVIDIA Quantum-X800 InfiniBand networking and supported by VAST Data storage. HIVE said it will retain ownership of the infrastructure after the five-year contract, preserving the possibility of cash flow beyond the initial term.

The company expects the hardware to be delivered and deployed in the fourth quarter. At that point, HIVE said, its HPC and AI daily revenue should be approximately $500,000. That is a company projection, not a current revenue figure, and the client name, utilization commitment and pricing terms were not disclosed.

$185M buildout and $35M customer deposit set the risk line

HIVE estimates capital expenditures for the cluster, hardware and warranties at about $185 million. The customer is expected to make an upfront deposit equal to roughly 10% of the total contract value, or about $35 million.

That deposit is meaningful, but it does not cover the whole build. HIVE said the deposit, prior financing initiatives and additional equipment financing are expected to support the deployment and optimize its capital structure. It did not specify the terms or size of the additional equipment financing in Sunday’s release.

The facility itself is part of the appeal. HIVE said the Merritt site uses renewable hydroelectric power and closed-loop liquid cooling designed to avoid ongoing water consumption for cooling. Those details matter to an AI-cloud buyer whose costs depend on power, cooling, equipment uptime and network performance—not only on access to a former mining site.

The same distinction is playing out across the sector. TeraWulf’s much larger AI lease showed how quickly data-center contracts can reshape the discussion around a miner, but also why headline contract values should be separated from commissioned capacity and reported revenue.

New contract extends HIVE’s Bitcoin miner-to-AI pivot

The contract is a distinct follow-up to HIVE’s June agreement with Bell AI Fabric and Cohere. That earlier deal carried about $220 million in total value over three years and also targeted approximately $70 million in contracted annualized revenue; it involved 2,304 NVIDIA Grace Blackwell GPUs. The new agreement is about $130 million larger in total stated value and two years longer, but its enterprise customer remains unnamed.

That progression makes the AI strategy more concrete than a generic power-site conversion. Still, it does not erase HIVE’s mining exposure. In its fiscal 2026 results, the company reported $297.8 million in total revenue, including $278.3 million from digital-currency mining and $19.5 million from HPC hosting services.

For readers tracking the shift, the checkpoints are straightforward: hardware delivery in the fourth quarter, the start of revenue recognition, customer utilization and the cost of the promised financing. The June deal supplied HIVE’s first large named customer path, covered in our Bell and Cohere contract report; Sunday’s release adds scale but leaves more information about the new customer undisclosed.

Broader crypto sentiment remains cautious. Alternative.me’s Crypto Fear and Greed Index stood at 31, or Fear, on Aug. 17. That reading does not determine HIVE’s contract economics, but it reinforces why investors are likely to focus on executed deployment and cash flow rather than projected ARR alone.

HIVE said it signed the agreement, but its release also contains customary forward-looking risk disclosures. The strongest confirmation will come when the cluster is installed, the customer begins using it and the expected revenue appears in HIVE’s reported results.