HIVE Digital Technologies Ltd. says its wholly owned subsidiary BUZZ High Performance Computing Inc. has supported a financing package intended to expand what the company describes as sovereign AI infrastructure in Canada.
In an announcement dated October 28, 2026, HIVE said BUZZ Alpha Cloud Inc., an indirect subsidiary, entered into a Loan and Security Agreement with an institutional lender for a single-digit, fixed-rate credit facility of approximately $129 million. The company described the Facility as fixed-rate capital with a term of three years.
Details of the $129 million Facility
According to the release, the Facility carries an interest rate of 9.0% per annum over a three-year term, with principal and interest amortizing over the life of the loan. HIVE said the financing is secured by the GPUs and related assets of BUZZ Alpha Cloud, supported by a limited recourse guarantee from BUZZ HPC and a pledge of BUZZ HPC’s equity in BUZZ Alpha Cloud.
The company added that at the end of the term it will own the GPUs outright with no residual payment. It also stated that BUZZ HPC is not otherwise liable under the Facility, which includes customary terms, conditions and covenants, including required debt-service coverage ratios.
Use of proceeds tied to an AI GPU cluster and a customer contract
HIVE said proceeds from the Facility will be used to purchase an advanced sovereign AI GPU cluster and related infrastructure, including NVIDIA GB200 NVL72 systems. The company linked the procurement to the deployment for a Cohere fixed-term sovereign AI customer contract that HIVE said was announced on June 18, 2026.
In its description of the transaction economics, HIVE said the financing is applied toward the purchase of a $165 million cluster of NVIDIA GB200 GPUs. The company also stated that it expects the cluster to be contracted on a three-year fixed $225 million total contracted value, or TCV, with Cohere, which HIVE said includes GPU compute and additional revenue attributed to connectivity and storage. HIVE said this implies an approximate 80% loan-to-cost ratio.
HIVE further said it plans to repay the Facility from contract revenue over a fixed amortization schedule, and that no common shares of HIVE are issued in connection with the debt.
Financing approach described as debt without share issuance
The release said the equity contribution from HIVE toward the balance of the GPU cluster and associated hardware and software costs is funded from the proceeds of 0% interest convertible bonds issued earlier in the year. HIVE noted that it has issued 0% interest convertible bonds for total gross proceeds of $245 million and that net proceeds are approximately $200 million after capped calls.
Expected timing and stated valuation for the GPUs
HIVE said delivery of the NVIDIA GB200 GPUs is expected toward the end of Q4 2026. It also stated that it believes the $165 million price for 2,303 NVIDIA GB200 GPUs reflects what it described as an attractive pricing level in the current market, adding that NVIDIA hardware has risen in price substantially over the last six months.
The company said securing fixed-interest debt, rather than variable-rate borrowing, is intended to support predictable contracted cash flow over the three years following deployment.
Company commentary on “sovereign compute”
HIVE’s executive chairman Frank Holmes said the company believes “sovereignty in the AI era will depend on where compute lives and who controls it,” and said the financing allows BUZZ HPC to put more infrastructure to work in Canada while keeping its capital structure disciplined.
HIVE’s president and CEO Aydin Kilic said the company has signed $600 million of TCV for GPU cloud deals during the year, across three GPU off-take contracts. He also reiterated that the $129 million financing is applied toward the purchase of the $165 million cluster and that the equity balance is supported by earlier convertible bond proceeds.
