# HIVE subsidiary BUZZ Alpha Cloud secures $129M fixed-rate loan for Cohere GPU cluster

Digest AI · Business & Funding · published 2026-10-28T05:24:03Z

Canonical: https://digestai.news/story/hive-subsidiary-buzz-alpha-cloud-secures-129m-fixed-rate-loan-for-cohe

## Summary

HIVE Digital Technologies announced that its indirect subsidiary BUZZ Alpha Cloud Inc. has entered a Loan and Security Agreement for a fixed-rate credit facility of approximately $129 million. The three-year facility carries a 9.0% fixed interest rate with principal and interest amortizing over the term. The debt is secured by the GPUs and related assets of BUZZ Alpha Cloud, supported by a limited recourse guarantee from BUZZ High Performance Computing Inc. (BUZZ HPC), and a pledge of BUZZ HPC's equity in BUZZ Alpha Cloud. No common shares are issued.

Proceeds will finance an NVIDIA GB200 NVL72 GPU cluster for a three-year sovereign AI contract with Cohere Inc., originally announced June 18, 2026. CEO Aydin Kilic stated the financing applies toward a $165 million cluster of 2,303 NVIDIA GB200 GPUs under a three-year fixed $225 million total contract value with Cohere, representing an approximate 80% loan-to-cost. The $225 million figure adds connectivity and storage revenue to the previously disclosed $220 million GPU compute revenue. HIVE's equity contribution is funded from 0% interest convertible bonds issued in 2026, with total gross proceeds of $245 million and net proceeds of approximately $200 million. Kilic noted HIVE has signed $600 million of total contract value for GPU cloud deals in 2026 across three contracts. Delivery of the GB200 GPUs is expected toward the end of Q4 2026.

## Key points

- BUZZ Alpha Cloud secures $129M fixed-rate credit facility at 9.0% over three years for NVIDIA GB200 NVL72 cluster
- Cluster of 2,303 GPUs valued at $165M supports three-year $225M sovereign AI contract with Cohere in Canada
- HIVE equity funded via 0% convertible bonds ($245M gross, ~$200M net); $600M total GPU cloud contracts signed in 2026

## Why it matters

Fixed-rate debt financing for sovereign AI infrastructure in Canada shows a model for predictable cash flow amid rising GPU costs and variable-rate borrowing by peers.

## Sources

1. [BUZZ HPC Lands $129M Fixed-Rate Credit Facility for Cohere GPU Cluster](https://unite.ai/buzz-hpc-lands-129m-fixed-rate-credit-facility-for-cohere-gpu-cluster) (Unite.AI, 2026-10-28)

## Cite

Digest AI, "HIVE subsidiary BUZZ Alpha Cloud secures $129M fixed-rate loan for Cohere GPU cluster", 28 October 2026, https://digestai.news/story/hive-subsidiary-buzz-alpha-cloud-secures-129m-fixed-rate-loan-for-cohe

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