HIVE Digital’s Stock Jumps 14% On News Of Nvidia Deal

Canada's HIVE Digital (NASDAQ: $HIVE) stock surged 14% after securing a $350 million, five-year artificial intelligence (A.I.) cloud computing contract with Nvidia (NASDAQ: $NVDA). This marks the company's largest A.I. cloud computing deal to date and brings it closer to its goal of achieving $200 million U.S. in annual recurring revenue (ARR).

The Nvidia GPU cloud services agreement also helps HIVE Digital reach the $180 million U.S. ARR milestone, up about $70 million U.S. from current levels. To meet the demands of the contract, HIVE Digital will deploy 2,016 Nvidia Blackwell Ultra GPUs at its Merritt, British Columbia data centre facility, requiring approximately $185 million U.S. in capital spending.

Once fully operational in late 2024, the GPU cloud business is projected to generate $500,000 U.S. in daily revenue. Despite its core focus on Bitcoin mining, HIVE Digital maintains a Bitcoin balance of $11 million U.S. on its balance sheet and a $208 million U.S. cash reserve, alongside its expanding data centre operations.