HIVE Digital Technologies Ltd ( TSX:HIVE , NASDAQ:HIVE , FRA:YO0 , BVC:HIVECO) has secured a roughly $129 million fixed-rate credit facility to buy GPUs for its sovereign AI contract with Cohere, the company said on Wednesday.
The loan, signed by HIVE's indirect subsidiary BUZZ Alpha Cloud with an institutional lender, carries a fixed rate of 9% over three years.
HIVE will own the GPUs outright at the end of the term with no residual payment.
Proceeds will fund NVIDIA GB200 NVL72 systems and related infrastructure for Cohere's three-year, fixed-term contract, announced in June 2026.
The facility is secured by the GPUs and related assets of BUZZ Alpha Cloud, with a limited recourse guarantee from BUZZ HPC and a pledge of BUZZ HPC's equity in BUZZ Alpha Cloud. It includes customary covenants, including required debt-service coverage ratios. BUZZ Alpha Cloud intends to repay it from contract revenue.
No common shares are being issued in connection with the loan, HIVE said.
The financing covers about 80% of the cost of a $165 million cluster of 2,303 NVIDIA GB200 GPUs, HIVE CEO Aydin Kilic said. The cluster is being contracted to Cohere at a fixed $225 million total contract value, which includes GPU compute and additional revenue from connectivity and storage.
"We have signed $600 million of TCV for GPU cloud deals this year, across 3 GPU off-take contracts," Kilic said.
HIVE is funding its equity contribution to the cluster from the proceeds of 0% interest convertible bonds issued earlier this year. The bonds raised $245 million in gross proceeds, or about $200 million net after capped calls.
HIVE said the $165 million price is attractive in today's market, as NVIDIA hardware prices have risen substantially over the last six months. It said fixed-rate debt, in a market where many peers have borrowed at variable rates, positions it for predictable contracted cash flow in the three years after deployment.
The infrastructure will keep compute within Canadian borders, the company said.
"Canada has the research talent, the clean energy and the institutions to help lead that future, and our vision is to build AI infrastructure that will serve humanity," said Frank Holmes, HIVE's executive chairman.
"This financing allows BUZZ HPC to put more of that infrastructure to work in Canada while keeping our capital structure disciplined."
Delivery of the GPUs is expected toward the end of the fourth quarter of 2026.
Shares of HIVE added around 2.2% in New York and Toronto on Wednesday.
