Investors gave HIVE Digital Technologies a warm welcome on Monday as shares surged following the announcement of a massive new venture into the artificial intelligence sector. The company revealed it had secured a 350 million dollar AI cloud services deal through its high performance computing subsidiary, BUZZ HPC. This strategic move signals a significant pivot toward the booming demand for AI infrastructure, positioning the firm as more than just a player in digital asset mining.

The heart of the agreement involves providing over two thousand Nvidia Blackwell Ultra GPUs to an investment grade enterprise customer over the next five years. These powerful systems will be used specifically for AI model training and inference workloads, housing them at the Bell AI Fabric facility in British Columbia. To stay competitive in an era where environmental impact is under scrutiny, HIVE is leveraging 100 percent renewable hydroelectric energy along with advanced closed loop liquid cooling technology to keep the hardware running efficiently.

From a financial perspective, the deal is expected to provide a substantial boost to the bottom line, adding roughly 70 million dollars in annualized revenue for BUZZ HPC. This brings the subsidiary’s total projected yearly revenue to about 180 million dollars. While the project requires an estimated capital expenditure of 185 million dollars, management expects it to generate strong and recurring cash flow once fully deployed.

Executive chairman Frank Holmes noted that while the application has changed, the company’s fundamental strength remains their ability to secure green energy and convert it into raw computing power. By blending sustainability with cutting edge Nvidia hardware, HIVE aims to capture a larger slice of the global AI build out. Management is currently eyeing a target of 200 million dollars in annual recurring revenue for its GPU cloud business and appears to be closing in on that milestone rapidly.