HIVE Digital Technologies Expands to Paraguay

HIVE Digital Technologies has announced plans to build a 100-megawatt Bitcoin mining site in Paraguay. This will be the company's first mining site in the country. The new site is expected to more than double HIVE's mining hashrate.

The announcement came after HIVE executives toured Paraguay. They met with President Santiago Peña and senior cabinet ministers. According to a July 22 statement, the executives saw massive potential for growth in the country.

HIVE estimates its hashrate will increase significantly. The company's current hashrate is 5.6 exahashes per second. After the new site is completed, the hashrate is expected to rise to 12.1 EH/s.

Energy from the Itaipu Dam

The new mining site will receive energy from Paraguay's Itaipu hydroelectric dam. The dam supplies all of Paraguay's local electricity needs and leaves a large amount of excess electricity that miners can tap into, making it a popular site for Bitcoin miners.

However, the announcement comes at a challenging time. Three days earlier, Paraguay's state-run electricity grid operator, Administración Nacional de Electricidad (ANDE), said it would increase electricity costs for legal cryptocurrency miners. The price increase is likely to take effect on August 1.

Cryptocurrency miners in the region are trying to change ANDE's decision. They claim that Paraguay's economy could see losses of up to $1.5 billion. Despite this, HIVE remains optimistic. The company estimates its 100-megawatt facility will generate over $100 million for ANDE over the next three years.

HIVE also plans to hire employees locally. The company said, "We are confident that this venture can deliver healthy returns and drive long-term value, fostering economic growth and innovation in the region."

New Acquisitions

In addition to the new mining site, HIVE announced another exciting development. The company has acquired 500 Bitmain S21 Pro Antminers. These should be shipped this month.

Paraguay will be the fourth country where HIVE operates mining sites. The company already has operations in Canada, Iceland, and Sweden. This expansion marks a significant step in HIVE's growth strategy.

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The clean energy-focused miner has seen its stocks rise. After falling over 48% in the first five months of 2024, the company's stock is now up 2.5% in 2024.