HIVE Digital Technologies Ltd. (NASDAQ: HIVE), a data center owner and operator focused on Bitcoin mining and GPU cloud services, announced on October 27, 2026 that its BUZZ HPC subsidiary secured about $129 million in fixed-rate debt financing. The three-year facility carries a 9.0% fixed interest rate and covers roughly 80% of the cost of an NVIDIA GPU cluster that HIVE has contracted to AI company Cohere.

Facility Terms

BUZZ Alpha Cloud Inc., an indirect subsidiary of HIVE, entered into a loan and security agreement with an unnamed institutional lender. Principal and interest amortize over the three-year term, and the loan includes customary covenants such as debt service coverage ratios.

The GPUs and related assets of BUZZ Alpha Cloud secure the facility, along with a limited recourse guarantee from BUZZ HPC and a pledge of its equity in BUZZ Alpha Cloud. At the end of the term, HIVE will own the GPUs outright with no residual payment. In addition, the company noted that the financing does not involve issuing any shares.

“This represents an approximate 80% loan-to-cost, at a fixed interest rate of 9.0%,” said Aydin Kilic, President and Chief Executive Officer of HIVE.

The Cohere Contract Behind the Cluster

HIVE is applying the financing toward a $165 million cluster of about 2,300 NVIDIA GB200 GPUs. HIVE has contracted that capacity to Cohere under a three-year, fixed $225 million sovereign AI agreement, which HIVE first announced in June alongside Bell AI Fabric. According to the company, the $220 million figure it disclosed earlier covered only GPU compute, while the $225 million total also includes connectivity and storage revenue.

HIVE expects delivery of the GB200 GPUs toward the end of the fourth quarter of 2026. Once HIVE deploys them, BUZZ Alpha Cloud intends to repay the facility from the Cohere contract revenue on a fixed amortization schedule. Meanwhile, the company said it has issued 0% convertible bonds for gross proceeds of $245 million, with net proceeds of about $200 million after capped calls.

“We believe sovereignty in the AI era will depend on where compute lives and who controls it,” said Frank Holmes, Executive Chairman of HIVE.

How the Financing Fits HIVE’s GPU Cloud Plans

The Cohere cluster is one of three GPU contracts HIVE has signed this year, which Kilic said total $600 million in contract value. In particular, the largest is a five-year, $350 million agreement announced in August with an unnamed investment-grade enterprise customer, covering 2,016 NVIDIA GB300 GPUs at the Bell AI Fabric facility in Merritt, British Columbia. At that time, HIVE said it planned to fund the related equipment partly through debt financing on the GPU purchases.

With that agreement, HIVE put its active and contracted GPU cloud annualized revenue at about $180 million, and it is targeting $200 million by the end of 2026. However, most of that contracted revenue depends on GPU deliveries and deployments scheduled for the fourth quarter.

Even so, Bitcoin mining still generates most of HIVE’s revenue for now. In its fiscal first quarter ended June 30, 2026, HIVE reported revenue of $79.1 million, up 73.5% year over year, including $72.1 million from mining and $7.1 million from its HPC business. Adjusted EBITDA came in at $13.4 million, while the GAAP net loss of $142.9 million mainly reflected non-cash items, including an $84.7 million provision for Swedish VAT assessments that the company is disputing. HIVE later reported that it exceeded $1 million in daily revenue on August 21, with GPU cloud contributing about $100,000 of that total.

Strategic Investment Summary

• Financing: HIVE Digital Technologies Ltd. (NASDAQ: HIVE) announced on October 27, 2026 that BUZZ HPC secured about $129 million in three-year, 9.0% fixed-rate financing.
• Loan-to-Cost: The facility covers roughly 80% of a $165 million NVIDIA GB200 GPU cluster, and HIVE will own the GPUs outright at the end of the term.
• Contracted Revenue: The cluster serves a three-year, $225 million contract with Cohere, and BUZZ Alpha Cloud intends to repay the loan from that contract revenue.
• Delivery Timing: HIVE expects delivery of the GB200 GPUs toward the end of the fourth quarter of 2026.
• GPU Cloud Target: Active and contracted GPU cloud annualized revenue stood at about $180 million after the August enterprise deal, against a $200 million target for the end of 2026.
• Q1 Results: Fiscal first quarter revenue rose 73.5% to $79.1 million, with adjusted EBITDA of $13.4 million and a GAAP net loss of $142.9 million driven mainly by non-cash items.

Find out more about the latest corporate developments and financial reports at the HIVE investor portal.

The post HIVE’s BUZZ HPC Secures About $129 Million in 9.0% Fixed-Rate Financing for Its Cohere GPU Cluster appeared first on PRISM MarketView.

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