Key Points
- HIVE Digital is set to acquire a 200 MW mining site in Paraguay, aiming to reach 25 EH/s by September.
- The deal, valued at $56 million, will significantly increase HIVE’s operational capacity and contribute to its global mining network.
HIVE Digital, a leading Canadian Bitcoin (BTC) mining company, has entered into a substantial agreement to purchase a 200 MW hydro-powered mining site in Paraguay from Bitfarms. This acquisition is part of HIVE’s strategy to boost its mining power to 25 EH/s by September.
The increase in power is significant, representing an over 400% rise from its current capacity of 6 EH/s, as disclosed by HIVE in a recent press release.
Phased Development and Expansion
The mining site, named Yguazú, will be developed in two stages. The first phase, which is already 80% complete, is expected to be operational by the second quarter, adding 6 EH/s to the capacity. The second phase, scheduled for August, will add another 6.5 EH/s using Bitmain S21+ hydro-cooled ASICs.
Upon completion of this acquisition, HIVE’s operational capacity in Paraguay will reach 300 MW. This, combined with its existing facilities in Canada and Sweden, will bring HIVE’s global capacity to 430 MW by the third quarter of 2025.
Deal Details and Future Plans
The deal, worth $56 million, includes a large power station and all its infrastructure. HIVE will make an upfront payment of $25 million, with the balance to be paid over six months. The project will be financed using HIVE’s cash and crypto assets. HIVE will also cover $19 million in deposits and construction costs to complete the site.
With this acquisition, HIVE is reinforcing its plan to secure 3% of the global Bitcoin mining network, according to HIVE’s executive chairman Frank Holmes. The announcement of the acquisition saw HIVE’s shares increase by 5% in pre-market trading. This rise followed a 10% drop the previous day, which was part of a wider sell-off among Bitcoin mining companies. The decrease was reportedly due to market worries about rumours of a new advanced AI startup in China.
