Shares of HIVE Digital Technologies jumped 6.9% to $4.25 Thursday morning after the company's computing subsidiary closed a landmark $220 million, three-year GPU cloud contract with Bell Canada and AI startup Cohere. The deal, announced alongside Bell, Cohere, and hardware maker Hypertec, will deploy advanced AI workloads on sovereign Canadian infrastructure . For a company still best known for mining Bitcoin, the contract is the clearest signal yet that HIVE's pivot to artificial intelligence is producing real revenue commitments — not just slide decks.

  • A Single Contract Nearly Matches a Year of AI Revenue. HIVE's AI computing business generated just $19.5 million in the fiscal year ended March 2026 . The new $220 million deal, spread over three years, implies roughly $73 million annually — nearly four times last year's AI revenue run rate. CEO Aydin Kilic noted that contracted computing revenue has now "surpassed $100 million." That figure still pales next to the $278 million HIVE earned from Bitcoin mining last fiscal year , but it begins to diversify a business dangerously tethered to crypto prices.

  • The GPU Bill Is Already Financed — With Debt. HIVE is funding the purchase of NVIDIA processors for this deal using proceeds from a $115 million convertible note — essentially a loan that can convert into stock — completed in April 2026 . That financing provides capital, but it also means potential dilution for existing shareholders if the notes convert. With about 267 million shares already outstanding and a market cap near $1 billion , investors should watch how rapidly debt and share count grow.

  • The Revenue Is Growing, but So Are the Losses. Fiscal 2026 revenue surged 158% to $297.8 million, yet net losses ballooned to $148.5 million . A planned $3.5 billion CAD AI "Gigafactory" near Toronto would supercharge capacity but demands enormous capital. Risks lean toward "persistent losses, heavy capital needs, dilution," and execution concerns .

  • Wall Street Wants to Believe, Cautiously. Analysts hold a consensus Buy with an average price target of $6.68 , roughly 57% above today's price. KBW recently raised its target to $5.00 but kept a neutral rating , while Canaccord maintained a Buy at $10.00 . The wide range reflects genuine uncertainty: this is a company that just proved it can sign big AI contracts but hasn't yet proved it can profit from them.