Hive Digital Technologies Boosts Bitcoin Mining Power with Paraguay Acquisition
Hive Digital Technologies Ltd., a leader in Bitcoin mining and blockchain infrastructure, has made a significant strategic move by acquiring Bitfarms' 200 MW hydro-powered Bitcoin mining facility in Yguazú, Paraguay. This acquisition is set to dramatically enhance Hive's capacity to mine Bitcoin, aiming to quadruple its current output by late 2025.
The strategic purchase, valued at $56 million, includes not only the power infrastructure but also a 240 MVA substation, land, and existing facilities. This deal will increase Hive's operational capacity in Paraguay to 300 MW, pushing the company's global capacity to an impressive 430 MW by the third quarter of 2025. This expansion is pivotal as it integrates with Hive's existing operations in Canada and Sweden, bolstering its status in the competitive Bitcoin mining landscape.
Expansion Details and Future Prospects
The development of the Yguazú site is planned in two distinct phases. The first phase, already 80% complete, is expected to add 6 EH/s to Hive's mining capabilities by April 2025. Following closely, the second phase will contribute an additional 6.5 EH/s by August 2025, utilizing advanced hydro-cooled ASIC miners. Hive has projected the total completion cost at approximately $400,000 per MW. Moreover, another 100 MW project in Paraguay is scheduled for energization by June 2025, which will further boost the capacity by 6.5 EH/s, leading to an interim total of 13 EH/s before the full expansion is realized.
To support this ambitious expansion, Hive has secured a fleet of ASIC miners capable of delivering 15 EH/s, including high-efficiency models like the Bitmain S21+ Hydro and Canaan Avalon. The company plans additional purchases to reach their ultimate goal of 25 EH/s, aiming for an efficiency of 16.5 joules per terahash.
Financially, Hive will manage these developments through a structured payment plan, starting with an initial $25 million payment at closing in Q1 2025, followed by $31 million spread over six monthly installments. Additionally, Hive will take over $19 million in power purchase agreement deposits to ANDE, the local utility, covering remaining construction costs from existing cash and cryptocurrency reserves.
Hive Digital Technologies' commitment to sustainability is evident in its choice of hydro-powered sites, aligning with its long-term strategy to leverage renewable energy for Bitcoin mining operations while contributing positively to local economies through job creation and utility payments. This move not only enhances Hive's operational scale but also its environmental and economic impact in regions like Paraguay, setting a benchmark for sustainable practices in the blockchain industry.