Overview
- On Monday HIVE’s BUZZ High Performance Computing signed a five‑year GPU cloud services agreement worth about $350 million with an unnamed investment‑grade enterprise customer that adds roughly $70 million in annualized recurring revenue.
- The deal calls for a dedicated Merritt, British Columbia cluster of 2,016 NVIDIA Blackwell Ultra GPUs in GB300 NVL72 rack systems with Quantum‑X800 InfiniBand networking and VAST Data storage and targets operation in Q4 2026.
- HIVE estimates the deployment needs about $185 million of capex, has received a roughly $35 million customer deposit and plans to use proceeds from a June convertible bond plus equipment financing to cover the balance.
- The contract lifts BUZZ HPC’s contracted GPU ARR to about $180 million toward management’s $200 million year‑end target, and the company will retain ownership of the hardware for future redeployment or sale.
- HIVE reported $79.1 million in fiscal Q1 2027 revenue and positive adjusted EBITDA but posted a GAAP net loss driven by an $84.7 million Swedish VAT provision that is under appeal, a liability analysts say could pressure cash or timing for expansion.