BUZZ HPC Secures $129 Million Fixed Rate Credit Line for Cohere GPU Cluster – Unite.AI

HIVE Digital Technologies said in an October 27, 2026 press 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 Facility

The loan provides a fixed interest rate of 9.0% per annum for a duration of three years, with principal and interest amortized over the life of the loan. All dollar amounts in this release are expressed in U.S. 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., HIVE’s wholly owned subsidiary known as BUZZ HPC, along with a lien on BUZZ HPC’s interest in BUZZ Alpha Cloud. BUZZ HPC is not otherwise liable under the Framework.

The agreement provides 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 remaining payments. Because the financing is structured as debt, no common shares of the company are issued. The debt is maintained at the project level and guaranteed by the infrastructure it finances; the company said BUZZ Alpha Cloud intends to reimburse the facility from contract revenue under a fixed amortization schedule.

Use of proceeds and economics of the contract

The proceeds will purchase a sovereign cluster of AI GPUs and related infrastructure, including NVIDIA GB200 NVL72 systems, to be deployed 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 to the purchase of a $165 million cluster of 2,303 NVIDIA GB200 GPUs contracted on a total fixed contract value of $225 million for three years with Cohere, a deal he described as a loan-to-cost ratio of about 80%. A footnote in the release states that the previously disclosed $220 million total contract value for the Cohere deal only covered GPU compute revenue, while the $225 million figure adds revenue attributed to connectivity and storage.

Kilic said the company’s equity contribution toward cluster balance and associated hardware and software costs is funded by proceeds from 0% interest convertible bonds issued in early 2026. The company noted that it has issued 0% interest convertible notes for total gross proceeds of $245 million, with net proceeds of approximately $200 million after restricted calls. Kilic added that HIVE has signed $600 million of the total contract value for GPU cloud deals in 2026 across three GPU offtake contracts.

The company said it believes the $165 million price point for the 2,303 GB200 GPUs is attractive in the current market, pointing out that the price of NVIDIA hardware has increased substantially over the previous six months, and said that securing fixed-interest debt, in a market where it described many competitors as having borrowed at variable rates, positions HIVE for predictable contracted cash flow in the three years following implementation.

The Cohere agreement of June

The funded deployment was first announced on June 18, 2026, when BUZZ HPC said it had entered into a three-year GPU cloud contract, valued at approximately $220 million in total, with Bell AI Fabric for Cohere Inc., combining Bell’s data center and connectivity platform, Cohere’s enterprise AI and large language models, and BUZZ HPC’s GPU cloud. Under this agreement, HIVE procured NVIDIA infrastructure powered by 2,304 NVIDIA Grace Blackwell GPUs in GB200 NVL72 rack-scale systems interconnected with the NVIDIA Quantum InfiniBand network and using liquid cooling.

The cluster is being deployed at Bell’s purpose-built facility in Merritt, British Columbia, where Cohere will manage its underlying models and enterprise AI solutions for government and enterprise customers across Canada. Hypertec, a Canadian high-performance computing OEM, provides hardware procurement, system integration, installation, commissioning and OEM support. The June announcement stated that HIVE was financing the large-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 rollout was expected to go live in late 2026 or early 2027, adding approximately $70 million in contracted annual recurring revenue to the then-current $35 million in realized ARR.

Sovereignty framework and corporate context

The statement frames the funded infrastructure as keeping computing within Canadian borders and describes Canada’s federal AI strategy as setting a direction for investing in Canadian technological sovereignty and keeping Canadian data safe under Canadian control. BUZZ HPC said it believes such capability could help Canadian businesses, researchers and public institutions build and operate advanced artificial intelligence at home.

Executive Chairman Frank Holmes said the company believes sovereignty in the age of artificial intelligence will depend on where the computer resides and who controls it, and that the financing allows BUZZ HPC to put more infrastructure into operation in Canada while keeping its capital structure disciplined.

HIVE has been building renewable energy and digital infrastructure since 2017, with data centers in Canada, Sweden and Paraguay, while BUZZ HPC designs and operates sovereign AI infrastructure as an original signatory to the Canadian Principles of Responsible Data Center Development. According to the release, the GB200 GPUs are expected to ship towards the end of the fourth quarter of 2026.