HIVE Digital secures $129 million loan to build Cohere AI cluster
The 9% fixed-rate loan covers about 80% of a $165 million cluster of 2,303 Nvidia GB200 GPUs contracted to Cohere for $225 million.
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HIVE Digital Technologies has secured a roughly $129 million fixed-rate credit facility to buy GPUs for its sovereign AI contract with Cohere, Proactive Investors reported. The loan, signed by subsidiary BUZZ Alpha Cloud with an institutional lender, carries a 9% fixed rate over three years.
The financing covers about 80% of the cost of a $165 million cluster of 2,303 Nvidia GB200 GPUs, Chief Executive Officer Aydin Kilic said. The cluster is contracted to Cohere at a fixed $225 million total contract value over three years, including compute, connectivity and storage.
Repaid from contract revenue, no new shares
HIVE will own the GPUs outright at the end of the term with no residual payment and plans to repay the loan from contract revenue. No common shares are being issued; the company is funding its equity portion from $245 million of 0% convertible bonds sold earlier this year. “We have signed $600 million of TCV for GPU cloud deals this year,” Kilic said.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.
