HIVE Digital Technologies Ltd. (TSX: HIVE | NASDAQ: HIVE), through its subsidiary BUZZ High Performance Computing Inc., has 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 supporting the previously announced three-year Cohere sovereign AI contract, and no common shares are being issued in connection with the facility.

Key Points

  • HIVE Digital Technologies Ltd. (TSX: HIVE | NASDAQ: HIVE | BVC: HIVECO)
  • BUZZ Alpha Cloud Inc. secured a ~$129 million, 9.0% fixed-rate, three-year credit facility to purchase 2,303 NVIDIA GB200 GPUs
  • The facility covers 80% of the $165 million cluster cost; the equity balance is funded from proceeds of previously issued 0% interest convertible bonds
  • Investors may be watching GPU delivery timing, debt-service coverage, and Cohere contract performance as key milestones

BUZZ Alpha Cloud Facility Structure and Security Arrangement

The facility amortises principal and interest over its three-year life and is secured by the GPUs and related assets held within BUZZ Alpha Cloud. BUZZ HPC provides a limited recourse guarantee and has pledged its equity in BUZZ Alpha Cloud, but is not otherwise liable under the facility. At the end of the term, HIVE will own the GPUs outright with no residual payment. The company notes the facility includes customary covenants, including required debt-service coverage ratios, and that BUZZ Alpha Cloud intends to repay the facility from contracted revenue generated under the Cohere agreement.

NVIDIA GB200 GPU Cluster Pricing and Equity Funding

The release states that 2,303 NVIDIA GB200 NVL72 GPUs are being acquired at a total cluster cost of $165 million, with the $129 million facility covering approximately 80% of that figure. The remaining equity contribution is being funded from net proceeds of 0% interest convertible bonds, which the company discloses generated total gross proceeds of $245 million and net proceeds of approximately $200 million after capped calls. HIVE stated it believes the $165 million price reflects an attractive cost given that NVIDIA hardware prices have risen substantially over the last six months. GPU delivery is currently expected toward the end of Q4 2026.

Cohere Contract and HIVE's Contracted GPU Revenue Base

The infrastructure funded by the facility supports the Cohere three-year sovereign AI customer contract announced June 18, 2026, which the company states carries a total contract value of $225 million, inclusive of GPU compute, connectivity, and storage revenue. The release also notes HIVE has signed $600 million of total contract value across three GPU off-take contracts in the current year. The Cohere deployment is intended to keep compute within Canadian borders, aligning with Canada's federal AI sovereignty strategy and institutional demand for domestically controlled AI infrastructure.