HIVE Digital Technologies is positioning itself for substantial growth by pivoting from traditional proof-of-work to innovative neural networks. The company aims to achieve $200 million in annualized recurring revenue from its GPU AI cloud operations by the end of 2026, a significant rise from its existing contracted base of approximately $35 million as of March 31, 2026.
The path to this ambitious revenue target begins with a major hardware investment. HIVE plans to nearly double its GPU fleet from around 5,500 units to approximately 11,000. This expansion is designed to enhance computing capabilities to cater to the booming enterprise demand for AI infrastructure. Recently, HIVE secured a $220 million multi-year contract with Bell AI Fabric for Cohere Inc., bolstering its revenue projections with a strong foundation.
Furthermore, HIVE reported a fourfold increase in AI capacity in British Columbia, indicating strategic concentration in areas with established energy and facility infrastructure. This GPU enhancement is being financed through various means, including a $115 million zero-percent exchangeable senior note and a prior $100 million fund specifically dedicated to GPU expansion.
Even though HIVE's origins lie in Bitcoin mining, it has not completely migrated away from this segment, maintaining a hashrate of around 25 EH/s. The company’s BUZZ HPC subsidiary appears to be the focal point for growth, with a reported total revenue of $297.8 million for FY2026, marking a 158% year-over-year increase.
HIVE operates renewable energy-powered data centers across Canada and Sweden, supported by an 860 MW power pipeline that serves both its mining and AI ventures.
Investors may wonder what the gap looks like between HIVE's current contracted ARR of $35 million and its lofty $200 million target. This significant sixfold increase in contracted revenue must be realized in just a few quarters. Following earnings announcements, analysts increased their price target for HIVE stock to between $5 and $7.
While the $220 million contract with Bell AI Fabric provides a considerable anchor for revenue, HIVE must pursue additional enterprise contracts of a comparable scale to reach its goal. The $115 million exchangeable note offers a cost-effective financing option in the short term, but it could dilute current shareholders if the stock performs sufficiently well for conversion.