HIVE to Expand Bitcoin Mining Capacity by 100 MW in Paraguay

Bitcoin mining and data center operator HIVE Digital is expanding its operations to Paraguay, utilizing 100 megawatts of hydroelectricity for digital asset mining.

On Monday, the Canadian mining operator stated that this expansion follows meetings with Paraguayan President Santiago Peña and his senior cabinet ministers, highlighting the country’s business-friendly environment.

HIVE is yet another publicly traded mining operation tapping into renewable energy from the Itaipu hydroelectric dam. Earlier this year, fellow Canadian operator Bitfarms announced plans to double its power capacity in Paraguay.

While HIVE did not provide details on the construction timeline, it said the expansion in South America will boost its bitcoin mining hashrate to over 12 EH/s in the next year.

In June, HIVE had a realized hashrate of 4.79 EH/s, ending the month with an operating capacity of 4.9 EH/s. The company expects to reach 5.5 EH/s at an efficiency of 24.5 J/TH by the end of July. With the new expansion plan, HIVE anticipates adding another 6.5 EH/s of hashrate upon completion.

As part of the expansion, HIVE acquired an additional 500 S21 Pro Antminers, contributing a total hashrate of approximately 117 PH/s. The specifics of further investments in additional miners to fill the new capacity have not yet been detailed but the firm appears to be set for a nine-figure transaction.

Recent hardware orders from other public mining peers indicate that the price for Bitmain’s future stocks of the more advanced S21 XP model was around $21.5/TH/s. According to Bitmain’s official website, the S21 XP is priced at $30.6/TH/s before a coupon discount or $21.5/TH/s after coupon.

As of June 30, HIVE held 2,496 BTC, which increased to 2,518 BTC by July 18, valued at approximately $170 million at current market prices. The firm reported cash and cash equivalent of $9.7 million as of March 31 and subsequently raised $32.2 million via stock offerings through June 24.

HIVE also mentioned its intention to hire locally for the Paraguay project to support regional economic growth. The company expects to generate over $100 million in revenue for the local power utility company over the next three years.