[ad_1] HIVE Digital Technologies said in an October 27, 2026 news release that BUZZ Alpha Cloud Inc., an indirect subsidiary, has entered into a Loan and Security Agreement with an institutional lender for a fixed-rate credit facility of approximately $129 million to finance an NVIDIA GB200 NVL72 GPU cluster for a sovereign AI contract with Cohere.Facility Terms and Security StructureThe facility bears a fixed interest rate of 9.0% per annum over a three-year term, with principal and interest amortizing over the life of the loan. All dollar amounts in the release are expressed in US dollars. The debt is secured by the GPUs and related assets of BUZZ Alpha Cloud and supported by a limited recourse guarantee from BUZZ High Performance Computing Inc., the wholly owned HIVE subsidiary known as BUZZ HPC, together with a pledge of BUZZ HPC’s equity in BUZZ Alpha Cloud. BUZZ HPC is not otherwise liable under the facility.The agreement carries customary terms, conditions and covenants, including required debt-service coverage ratios, and at the end of the term HIVE will own the GPUs outright with no residual payment. Because the financing is structured as debt, no common shares of the company are issued in connection with it. The debt is held at the project level and secured by the infrastructure it funds; the company said BUZZ Alpha Cloud intends to repay the facility from contract revenue over a fixed amortization schedule.Use of Proceeds and Contract EconomicsProceeds will purchase a sovereign AI GPU cluster and related infrastructure, including NVIDIA GB200 NVL72 systems, for deployment under the three-year fixed-term sovereign AI customer contract with Cohere announced on June 18, 2026. President and CEO Aydin Kilic said the financing is applied toward the purchase of a $165 million cluster of 2,303 NVIDIA GB200 GPUs contracted on a three-year fixed $225 million total contract value with Cohere, an arrangement he described as an approximate 80% loan-to-cost. A footnote in the release states that the $220 million total contract value previously disclosed for the Cohere deal covered only GPU compute revenue, while the $225 million figure adds revenue attributed to connectivity and storage.Kilic said the company’s equity contribution toward the balance of the cluster and its associated hardware and software costs is being funded from the proceeds of 0% interest convertible bonds issued earlier in 2026. The company noted it has issued 0% interest convertible bonds for total gross proceeds of $245 million, with net proceeds of approximately $200 million after capped calls. Kilic added that HIVE has signed $600 million of total contract value for GPU cloud deals in 2026 across three GPU off-take contracts.The company stated it believes the $165 million price for the 2,303 GB200 GPUs is attractive in the current market, noting that NVIDIA hardware has risen substantially in price over the preceding six months, and said that securing fixed-interest debt, in a market where it described many peers as having borrowed on variable rates, positions HIVE for predictable contracted cash flow in the three years following deployment.The June Cohere AgreementThe deployment being financed was first announced on June 18, 2026, when BUZZ HPC said it had executed a three-year GPU cloud contract then valued at approximately $220 million in total contract value with Bell AI Fabric for Cohere Inc., combining Bell’s data centre and connectivity platform, Cohere’s enterprise AI and large language models, and BUZZ HPC’s GPU cloud. Under that agreement, HIVE procured NVIDIA infrastructure powered by 2,304 NVIDIA Grace Blackwell GPUs in GB200 NVL72 rack-scale systems interconnected with NVIDIA Quantum InfiniBand networking and using liquid cooling.The cluster is being deployed at Bell’s purpose-built facility in Merritt, British Columbia, where Cohere is to operate its foundation models and enterprise AI solutions for government and corporate customers across Canada. Hypertec, a Canadian high-performance computing OEM, is handling hardware procurement, system integration, installation, commissioning and OEM support. The June announcement said HIVE was funding the rack-scale purchase in part with proceeds from a $115 million convertible note financing completed in April 2026, and Kilic said at the time that the deployment was expected to go live in late 2026 to early 2027, adding approximately $70 million in contracted annual recurring revenue to a then-current $35 million in realized ARR.Sovereignty Framing and Company BackgroundThe release frames the funded infrastructure as keeping compute within Canadian borders and describes Canada’s federal AI strategy as setting a direction to invest in Canadian technology sovereignty and keep Canadian data secure under Canadian control. BUZZ HPC said it believes such capacity can help Canadian enterprises, researchers and public institutions build and run advanced AI at home.Executive Chairman Frank Holmes said the company believes sovereignty in the AI era will depend on where compute lives and who controls it, and that the financing allows BUZZ HPC to put more infrastructure to work in Canada while keeping the capital structure disciplined.HIVE has been building renewable power and digital infrastructure since 2017, with data centres in Canada, Sweden and Paraguay, and BUZZ HPC designs and operates sovereign AI infrastructure as an original signatory of Canada’s Responsible Data Centre Development Principles. According to the release, delivery of the GB200 GPUs is expected toward the end of Q4 2026. [ad_2] Source link
