Hive Digital Technologies has acquired a Toronto data centre through its wholly owned subsidiary Fuel Buzz for $17.25 million in cash and stock.

Hive paid the unidentified vendor $12 million in cash and issued one million shares in the capital of the company at a price of $5.25 per share.

The 7.2-megawatt facility will be upgraded to tier one standards from tier 3. The move will significantly expand Buzz’s Canadian footprint and reinforce its role as Hive’s dedicated platform for high-performance computing (HPC) and AI growth, said the parent firm.

The acquisition also complements Buzz’s preferred partnership with Bell Canada after the deal commence in August, said Hive.

“Buzz is driving our HPC and AI strategy forward, and this acquisition marks a pivotal step in expanding our Canadian data-center portfolio,” said Frank Holmes, executive chairman for Hive. “By transforming former Bitcoin mining facilities into tier 3, AI-ready infrastructure, we are capitalizing on one of the most exciting opportunities in the digital economy. Hive’s investment in Buzz underscores our commitment to leading this transformation.”

Founded in Vancouver in 2017, Hive was the first Canadian cryptocurrency miner listed on the TSX Venture exchange. Still incorporated in Canada, the global company is now headquartered in San Antonio.

Buzz is also a Canadian firm.

Pictured: New Buzz data centre in Toronto.

Photo: Buzz HPC