HIVE Digital Technologies Ltd. (TSX: HIVE | NASDAQ: HIVE), through its subsidiary BUZZ High Performance Computing Inc., announced that BUZZ Alpha Cloud Inc. has entered into a Loan and Security Agreement for a fixed-rate credit facility of approximately $129 million. The financing carries a 9.0% fixed interest rate over a three-year term and represents an 80% loan-to-cost ratio against a $165 million NVIDIA GB200 GPU cluster. Proceeds will fund infrastructure deployed under a previously announced three-year sovereign AI contract with Cohere, and no common shares are being issued in connection with the facility.

Key Points

  • HIVE Digital Technologies Ltd. (TSX: HIVE | NASDAQ: HIVE) through subsidiary BUZZ HPC
  • BUZZ Alpha Cloud secured approximately $129 million at a fixed 9.0% annual interest rate, amortising over three years
  • Funds will purchase 2,303 NVIDIA GB200 GPUs valued at $165 million; delivery expected towards the end of Q4 2026
  • Investors may be watching GPU delivery timelines, Cohere contract performance, and debt-service coverage compliance

Facility Structure Limits Recourse and Avoids Share Dilution

The facility is secured by the GPUs and related assets held within BUZZ Alpha Cloud, supported by a limited recourse guarantee from BUZZ HPC and a pledge of BUZZ HPC's equity in BUZZ Alpha Cloud. Principal and interest amortise over the three-year term, and HIVE will own the GPUs outright at maturity with no residual payment required. Because the facility is structured as debt rather than equity, no common shares of the Company are issued. The Company stated that the equity contribution toward the remaining cluster cost is being funded from proceeds of previously issued 0% interest convertible bonds totalling $245 million in gross proceeds.

NVIDIA GB200 GPU Cluster Tied to Cohere's Three-Year Contract

The release states that the $165 million GPU cluster comprises 2,303 NVIDIA GB200 NVL72 systems contracted to Cohere under a three-year agreement with a total contract value of $225 million, which includes GPU compute, connectivity, and storage revenue. President and CEO Aydin Kilic noted in the announcement that HIVE has signed $600 million in total contract value across three GPU off-take agreements in the current year. The Company expressed the view that the per-unit price for the GB200 GPUs represents an attractive entry point given what it described as substantial NVIDIA hardware price increases over the prior six months. Delivery of the GPUs is expected towards the end of Q4 2026.

Sovereign AI Mandate Keeps Canadian Compute Inside Canadian Borders

The release emphasises that the infrastructure funded by the facility will operate within Canadian borders, aligning with Canada's federal AI strategy around technology sovereignty and domestic data security. BUZZ HPC positions itself as a provider enabling Canadian enterprises, researchers, and public institutions to run AI workloads under domestic jurisdiction. The Company highlighted its nine-year history building renewable-energy-powered digital infrastructure across Canada, Sweden, and Paraguay, describing BUZZ HPC as an extension of that foundation into sovereign AI cloud services. BUZZ HPC is also noted as an original signatory of Canada's Responsible Data Centre Development Principles.