HIVE Digital Secures $129M Debt Facility for NVIDIA Cluster
Key Summary
HIVE Digital Technologies announced a $129Mfixed-rate credit facility Wednesday to finance an NVIDIA GB200 NVL72 GPU cluster. The 3-year loan carries a 9% interest rate and covers 80% of the $165Mhardware cost, backed by a sovereign AI contract with Cohere valued at $225M.
Key Bullets
- HIVE Digital secured a $129 million fixed-rate credit facility with an institutional lender to fund a new hardware cluster.
- The 3-year loan carries a 9% interest rate and covers an 80% loan-to-cost ratio for an NVIDIA GB200 NVL72 cluster.
- The hardware deployment directly services a 3-year enterprise contract with Cohere valued at approximately $225 million.
- Equity requirements for the remaining hardware costs are covered by prior convertible bond proceeds without issuing new common stock.
Debt Facility Funds NVIDIA Cluster
HIVE Digital Technologies secured roughly $129Min fixed-rate debt Wednesday to acquire the hardware required for its sovereign AI agreement with Cohere. Corporate disclosures reveal the credit facility carries a 9% fixed interest rate across a 3-year term. BUZZ Alpha Cloud Inc., an indirect operating subsidiary of HIVE, closed the transaction on October 27, 2026. The facility provides capital for a $165MNVIDIA GB200 NVL72 cluster featuring 2,303 specialized processors.
The loan represents an 80% loan-to-cost structure where an institutional lender covers the bulk of the purchase price. HIVE supplies the remaining equity portion using proceeds from earlier zero-coupon convertible bonds. Corporate filings confirm no common shares were issued for the transaction. The financing arrangement leaves equity dilution off the table entirely.
Revenue Backs Hardware Repayment Schedule
The newly funded hardware cluster is dedicated entirely to a 3-year contract with Cohere valued at approximately $225M. HIVE originally announced that commercial agreement on June 18, 2026. Contract revenues will directly service the 3-year debt obligation. The customer effectively funds the underlying infrastructure over the operational lifespan of the agreement.
GPU deliveries are scheduled to arrive toward the end of the fourth quarter of 2026. That timeline aligns with the activation date of the Cohere service agreement. Hardware assets serve as collateral for the credit facility under a limited recourse structure. The arrangement protects the broader corporate balance sheet if operational metrics fall short.
Miners Pivot to Enterprise Infrastructure
HIVE continues transitioning its operational footprint from legacy Bitcoin mining toward high-performance computing and artificial intelligence hosting. Since rebranding in 2023, the firm has repurposed renewable-powered data center facilities located across Canada, Sweden, and Paraguay. The Cohere agreement represents the third major GPU off-take contract secured by the operator this year, bringing total contract values to $600M.
Management claims its BUZZ HPC subsidiary operates with top-tier network speeds based on internal benchmark testing. The 9% borrowing cost leaves little room for operational delays. Hardware deployment must proceed on schedule to meet the debt service timeline. The final loan payment leaves HIVE holding the 2,303 GPUs completely unencumbered.
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