Key insights
- HIVE Digital secured a $129 million loan to fund a $165 million Nvidia GPU cluster for AI company Cohere. The loan has a fixed 9.0% interest rate over three years and is secured by the GPUs. The cluster purchase is supported by a three-year contract with Cohere valued at $225 million. This financing allows HIVE to expand its AI infrastructure without issuing new shares, with GPU delivery expected in Q4 2026.
HIVE Digital Technologies Ltd. (HIVE), through its indirect subsidiary BUZZ Alpha Cloud Inc., has secured a $129 million fixed-rate credit facility from an institutional lender to purchase an Nvidia GB200 NVL72 GPU cluster and related infrastructure.
The facility carries a fixed interest rate of 9.0% per annum over a three-year term, with principal and interest amortizing over the life of the loan. It is secured by the GPUs and related assets of BUZZ Alpha Cloud, supported by a limited recourse guarantee from BUZZ HPC and a pledge of BUZZ HPC’s equity in BUZZ Alpha Cloud. At the end of the term, HIVE will own the GPUs outright with no residual payment.
Proceeds will fund the purchase of a $165 million cluster of 2,303 Nvidia GB200 GPUs, representing an approximately 80% loan-to-cost ratio. The remaining balance is being funded from proceeds of 0% interest convertible bonds previously issued by the company, totaling $245 million in gross proceeds, or approximately $200 million net after capped calls.
The infrastructure is tied to a three-year fixed-term contract with AI company Cohere, which the company states carries a total contract value of $225 million, including GPU compute, connectivity, and storage. BUZZ Alpha Cloud intends to repay the facility from contract revenue. No common shares are being issued in connection with the financing.
Delivery of the GB200 GPUs is expected toward the end of Q4 2026, with deployment in Canada.
President and CEO Aydin Kilic stated the company has signed $600 million in total contract value across three GPU off-take contracts in the current year.
HIVE operates data centers in Canada, Sweden, and Paraguay. The company is listed on the Toronto Stock Exchange, Nasdaq, and the Bolsa de Valores de Colombia.
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