RETRANSMISSION: HIVE's BUZZ Signs $30 Million in AI Cloud Contracts, Accelerating Global HPC Tier-III Data Center Expansion

Core Viewpoint - BUZZ High Performance Computing, a subsidiary of HIVE Digital Technologies Ltd., has signed customer agreements worth approximately $30 million over two years, marking a significant advancement in its AI cloud strategy [2][10]. Group 1: Business Expansion and Revenue Projections - BUZZ is expanding its AI-optimized GPU deployment at its Canada West location in Manitoba, with the first phase involving 504 liquid-cooled Dell server-based GPUs designed for high-performance AI and HPC workloads [4]. - Management anticipates that the initial phase will generate around $15 million in annual recurring revenue (ARR) once fully operational, with total annualized revenue for HIVE's HPC segment expected to rise from approximately $20 million to about $35 million [5]. - The company aims to scale its HPC GPU AI cloud business to approximately $140 million in ARR over the next year, contingent on market conditions and successful infrastructure deployment [10]. Group 2: Infrastructure and Investment - To support growth, the company plans to incur capital expenditures for GPU acquisition, electrical and cooling infrastructure, and working capital [6]. - Constructing a fully self-funded Tier-III facility with similar GPU capacity could require around $70 million in capital expenditures, highlighting the higher capital intensity compared to Tier-I data centers [8]. - The company is pursuing vendor financing arrangements and strategic partnerships to scale efficiently while minimizing upfront capital intensity [9]. Group 3: Market Position and Future Outlook - HIVE has established itself as a long-standing operator in the crypto Tier-I data center space, leveraging this foundation to build a high-growth AI cloud platform across Canada, Sweden, and Paraguay [7]. - Demand for high-performance, power-efficient AI compute is expanding globally, positioning BUZZ as a growth catalyst in the AI supercycle [11][13]. - BUZZ has been recognized for its fast data center network, validating its technical architecture and execution capabilities [12].