HIVE Secures $129M Fixed-Rate Loan to Buy NVIDIA GPUs

On October 27, 2026, HIVE Digital Technologies (TSX: HIVE; Nasdaq: HIVE; BVC: HIVECO) announced a fixed-rate credit facility of approximately $129 million, signed by BUZZ Alpha Cloud Inc. BUZZ Alpha Cloud is an indirect subsidiary held through BUZZ HPC, HIVE’s wholly owned AI cloud infrastructure subsidiary. The proceeds will buy a sovereign AI GPU cluster, including NVIDIA GB200 NVL72 systems, for the three-year Cohere contract HIVE first announced on June 18, 2026. All figures are in US dollars unless noted.

HIVE’s release focuses as much on how the loan works as on its size. The debt is held at the project level, it is backed by the GPUs it pays for, and the loan itself creates no new shares.

How the $129 Million Facility Is Structured

The release sets out the core terms:

• Rate and term: A fixed interest rate of 9.0% per year over three years, with principal and interest amortizing over the life of the loan.

• Security: The facility is secured by the GPUs and related assets of BUZZ Alpha Cloud. The facility is also supported by a limited recourse guarantee from BUZZ HPC and a pledge of BUZZ HPC’s equity in BUZZ Alpha Cloud. Beyond those arrangements, BUZZ HPC is not otherwise liable.

• Covenants: Customary terms, conditions and covenants apply, including required debt service coverage ratios.

• Repayment: BUZZ Alpha Cloud intends to repay the facility from contract revenue on a fixed amortization schedule.

• Ownership at maturity: HIVE says it will own the GPUs outright at the end of the three-year term, with no residual payment.

• Share count: As debt rather than equity, the facility involves no issuance of HIVE common shares.

The GB200 Cluster and the Cohere Contract

HIVE and President and CEO Aydin Kilic tied the loan to specific hardware and contract figures:

• Cluster cost: The $129 million is applied toward a $165 million cluster of NVIDIA GB200 GPUs. HIVE separately states the price covers 2,303 GPUs.

• Loan to cost: Kilic described the financing as an approximate 80% loan-to-cost at the fixed 9.0% rate.

• Equity portion: HIVE funds the balance of the cluster and associated hardware and software from its 0% interest convertible bonds. The bonds raised $245 million gross and approximately $200 million net after capped calls.

• Contract value: Cohere’s three-year fixed contract now carries $225 million in total contract value, covering GPU compute plus revenue attributed to connectivity and storage. HIVE says the TCV previously disclosed for the Cohere deal covered GPU compute revenue only.

• Wider order book: Kilic said HIVE has signed $600 million of total contract value for GPU cloud deals in 2026, across three GPU off-take contracts.

HIVE also states it believes the $165 million price is very attractive. HIVE cites a substantial rise in NVIDIA hardware prices over the six months before the announcement. The company also says fixed-rate debt gives HIVE predictable contracted cash flow for three years after deployment. Both are company assessments.

Filings outside the October 27 release set out how those bonds turn into shares. The release calls them convertible bonds; HIVE’s 10-Q and 8-K filings for the April and June tranches describe the same instruments as 0% exchangeable senior notes due 2031. The notes were issued by HIVE Bermuda 2026 Ltd., guaranteed by HIVE, and sold privately to institutional buyers:

If both tranches were settled entirely in shares at the initial exchange rates, HIVE would issue up to roughly 71.7 million shares, against about 274.3 million outstanding as of August 14, 2026. The June filing states HIVE can instead settle exchanges in cash, shares or a combination, at its election. HIVE bought capped calls on both tranches to limit potential dilution, capped at $4.92 per share for the April notes and $8.5275 for the June notes.

Executive Commentary

Executive Chairman Frank Holmes framed the financing around Canadian sovereignty, saying sovereignty in the AI era will depend on “where compute lives and who controls it.” He added the facility lets BUZZ HPC deploy more infrastructure in Canada while keeping the company’s capital structure disciplined.

The release frames the deployment against Canada’s federal AI strategy and states the funded infrastructure will keep compute within Canadian borders.

What the Figures Do Not Show

• Contract value is not revenue: The $225 million and $600 million figures are total contract value, not recognized revenue. GPU delivery is expected toward the end of Q4 2026, after the announcement date.

• Lender and full project cost: The release does not name the lender or state the total cost of the cluster plus associated hardware and software, so the full basis of the approximate 80% figure is not disclosed.

Next Steps

The next milestone HIVE has set out is delivery of the GB200 GPUs toward the end of Q4 2026, followed by deployment for Cohere. BUZZ Alpha Cloud then intends to repay the facility from contract revenue over the fixed three-year amortization schedule. HIVE’s subsequent financial reporting will show when the Cohere contract begins contributing recognized revenue.

Earlier Coinjuice coverage of HIVE’s AI arm includes BUZZ HPC’s appointment of Hubert Marleau as independent director.

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