Canadian Bitcoin mining giant Hive Digital is making a significant investment in Paraguay, signaling a strategic move to expand its operations in the South American country.
The publicly traded company, listed on both the Toronto Stock Exchange and Nasdaq, revealed on Tuesday that it has acquired 13,480 units of new mining machines, valued at over $60 million. The purchase aims to bolster its presence in Paraguay and secure a 2% stake in the global Bitcoin network. The machines, Bitmain Antminer S21+ Hydros, boast a formidable hashrate capacity of 4.3 exahashes per second (EH/s), underscoring Hive’s commitment to scaling up its mining capabilities.
In addition to the initial purchase, Hive Digital has also secured an option to buy an additional 4.3 EH/s of the same model within the next year. With the potential expansion, the company’s mining fleet could potentially reach 8.6 EH/s, with ambitious plans to achieve a mining hashrate of 15 EH/s by the summer of 2025.
Executive Chairman Frank Holmes expressed confidence in the company’s growth trajectory, stating that reaching 15 EH/s would catapult Hive’s annualized revenue to over $300 million and generate more than $200 million in mining margin based on current market conditions.
Paraguay emerged as a strategic choice for expansion due to its abundant green energy resources. Hive had been exploring opportunities in the country for some time, with a particular focus on leveraging the renewable energy generated by the Itaipu hydroelectric dam for its operations.
Holmes highlighted Paraguay’s pro-business environment and favorable tax policies as key factors in the decision-making process. By partnering with the government to utilize surplus electricity for mining operations, both parties stand to benefit economically, with Paraguay gaining a stable source of revenue in U.S. dollars.
As global interest in Bitcoin mining continues to grow, Paraguay’s appeal as a hub for mining operations has intensified. President Santiago Peña has expressed a vision for the country to become a tech hub and a bridge between Latin America and the global tech ecosystem.
The move by Hive Digital to expand its presence in Paraguay not only underscores the company’s commitment to sustainable mining practices but also aligns with the country’s ambitions to establish itself as a prominent player in the crypto space.
$HIVE is acquiring 8.6 EH/s of Bitmain S21+ Hydro chips, powering a leap to 15 EH/s by summer 2025.
That’s 9 BTC/day, $300M+ annual revenue, and 2% of the global Bitcoin network—powered by green hydro energy in Paraguay. 🌿⚡
This move strengthens HIVE’s position as a leader in… pic.twitter.com/KLf2xICplI
— HIVE Digital Technologies (@HIVEDigitalTech) December 3, 2024
Paraguay’s allure as a destination for Bitcoin miners underscores the country’s potential to become a crypto-friendly jurisdiction, with a focus on sustainable energy practices and economic growth.
President Peña’s vision for Paraguay as a tech hub and gateway to Latin America positions the country as a promising location for companies like Hive Digital seeking to capitalize on the burgeoning crypto market.
Edited by Andrew Hayward