Markets· August 17, 2026 at 01:31 p.m.
HIVE Digital's Stock Surges 14% on $350M AI Cloud Deal with Nvidia
Key takeaways
- HIVE Digital signs largest AI cloud deal yet with Nvidia
- Deal worth $350M over five years
- Projected to add $70M annual revenue to HIVE
Canada's HIVE Digital has seen a 14% increase in its stock price following the announcement of a five-year, $350 million artificial intelligence (AI) cloud computing contract with chipmaker Nvidia. This is the largest AI cloud deal for HIVE to date and brings the company closer to its goal of achieving $200 million in annual recurring revenue (ARR).
Under the terms of the agreement, HIVE Digital will deploy 2,016 Nvidia Blackwell Ultra GPUs at its data center facility in Merritt, British Columbia. The project is expected to generate $500,000 per day in revenue once fully operational in Q4 2022.
The deal is projected to add $70 million in annual revenue to HIVE Digital, bringing the company's ARR to approximately $180 million. The required capital spending for this project is estimated at around $185 million, with HIVE planning to use a mix of financing sources.
HIVE Digital started as a Bitcoin miner but has transitioned into an AI and high-performance computing (HPC) data center operator. As of Q2 2022, the company held $11 million in Bitcoin on its balance sheet, a small amount compared to its $208 million in cash and rapidly growing data center operations.
