On Monday, November 17, the day when crypto trended downward, the stock of Vancouver-based Hive Digital Technology (HIVE) surged 7.5%. Hive is up 285% in Q2 earnings, year-on-year. That’s not uncommon in the industry, which is enjoying its time in the Wall Street limelight, but Hive is unique both in its approach and in its aggressiveness.
Hive’s subsidiary BUZZ HPC, a provider of AI / GPU, recently announced a deal with Dell Technologies and Bell Canada. Meanwhile, it has successfully scaled its Bitcoin mining fleet to 16.2 EH/s, reaching 25 EH/s roughly six weeks later, resulting in an 86% increase in the average hashrate quarter-over-quarter.
From Renewables to “Sovereign AI”
Among big public miners, Hive is unique in its mission of providing “renewably-sourced” and “clean” computing power, positioning its staff as “global leaders in sustainable data center infrastructure,” with operations based in Paraguay, Sweden, and Canada.
The deal with Bell Canada involves Bell AI Fabric of which Bell Canada’s president and CEO said, “Bell’s AI Fabric will ensure that Canadian businesses, researchers and public institutions can access high-performance, sovereign and environmentally responsible AI computing services. Through this investment, Bell is immediately bolstering Canada’s sovereign AI compute capacity, while laying the groundwork to continue growing our AI economy. This is transformational for our customers, for Canada and for Bell.”
This framing places Hive squarely at the center of Canada’s push for sovereign AI capacity. An arena where domestic availability of high-performance compute is increasingly viewed as a matter of economic and geopolitical security.
Craig Tavares, President and COO of BUZZ HPC, stated: “This acquisition represents an important step forward for BUZZ HPC and for Toronto’s role in the growing AI sector. Together with the Bell AI Fabric partnership, the new data center will provide the power and infrastructure needed to support Canadian research, business innovation, and secure, high-performance deployments. Whether through colocation services or direct access to our accelerated compute clusters, our customers and partners will benefit from infrastructure designed for scalability, reliability, and data sovereignty.“
By integrating Nvidia-accelerated hardware with Bell’s fiber network and ecosystem partners such as Cohere, Hive is positioning itself as a fast-moving alternative to the slower build cycles of traditional hyperscale players.
Bell noted in this announcement: “Buzz HPC’s large-scale Nvidia accelerated computing infrastructure, purpose-built for AI, machine learning and scientific computing, will be integrated with Bell AI Fabric’s advanced fibre network, datacentres and partner ecosystem, including Cohere. This combined capability supports a range of use cases, including developing AI foundational models and fine-tuning existing models all within Canada.”
HIVE’s Sweden and Paraguay Expansions
Similarly in Sweden, Johanna Thornblad, Hive’s Sweden Country president, commented: “The Boden expansion reinforces Sweden’s leadership in sustainable digital infrastructure. Building on our two years of AI operations in Stockholm, this conversion project will deliver enterprise-grade AI capacity to the EU market faster and more efficiently than traditional data-center builds.”
Sweden’s established grid stability and cool climate already make it an AI-friendly region, and Hive’s move to repurpose mining facilities into enterprise-grade AI data centers fits directly into European demand for sovereign compute.
In early October, Hive announced plans to expand its data center capacity in Paraguay, increasing the Yguazú data center to 400MW, exclusively powered by hydroelectric energy. Hive is expanding aggressively in Paraguay as well, where its Yguazú data center is expected to reach 400MW, fully powered by hydroelectric energy.
Cindy Feng, founder of Bitcoinminingstock.io, wrote in an email to Disruption Banking,
“It’s worth flagging that AI/HPC workloads typically require ultra-stable voltage and minimal downtime to avoid computational errors, hardware stress, and interruptions. Hydro power can fluctuate seasonally with water availability, which may introduce variability in output. So any operator relying heavily on hydro would likely need a backup line or additional engineering measures in place to maintain stability and avoid downtime.”
Feng’s warning underscores a critical tension: renewable energy is a strong branding narrative, but not all renewables offer the stability required for large-scale AI workloads without substantial engineering reinforcement.
Is Hive Really Ready for Hyperscalers? Opinions Diverge
Executive Chairman Frank Holmes said, “Hive is turbocharging the transition from bitcoin mining to AI HPC data centers,” adding that the firm is repurposing stranded renewable energy and existing infrastructure for hyperscaler-ready compute.”
Holmes presents Hive as a first mover capitalizing on stranded renewable energy, but others see a gap between ambition and current capacity.
According to Feng, this might be a bit premature, arguing, “Hive is currently renting third-party data centres for their cloud services. With around 5,150 GPUs deployed, I don’t think the current scale is large enough to be particularly attractive to hyperscalers at this stage.”
While Hive is expanding fast, hyperscalers typically evaluate partners at a scale far above 5,000 GPUs. Still, Hive’s trajectory could bring it into that league within two years.
An Audacious Plan
CEO Aydin Kilic said Hive’s “dual-engine” model of using bitcoin-mining revenues to fund AI and HPC build-outs creates a “virtuous loop” that supports both network security and the growing demand for compute in the AI economy.
BUZZ has the ambitious goal of amassing 11,000 GPUs for AI cloud by the end of 2026, more than doubling its current 5,000 GPUs already in operation.
BUZZ is developing an impressive fleet of high-efficiency liquid-cooled data center designs for Canada and Sweden, expected to come online in the second half of 2026.
The company forecasts the generation of $120 million in annual run-rate revenue, on an operating margin of 80% after counting energy and data center costs.
Hive Digital is racing ahead with a hybrid model that merges Bitcoin mining economics with the increasing global demand for AI compute. Its renewable-powered infrastructure, international footprint, and partnerships with Dell and Bell give it credibility as one of the most aggressive miners pivoting into AI.
Still, questions remain about whether the current scale and reliance on hydro-based regions can meet hyperscaler standards. What’s clear is that Hive is betting big on becoming an early leader in sustainable AI capacity, and investors, at least for now, are betting with them.
Author: Tim Tolka, Senior Reporter
#Crypto #Blockchain #DigitalAssets #DeFi
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
Why Riot Platforms is Focusing on Data Centers, and not just Bitcoin | Disruption Banking
From Bitcoin to Big Data: Inside Cipher’s Hyperscale Power Play | Disruption Banking
