HIVE Digital Boosts Bitcoin Mining with $85M Paraguay Power Plant Acquisition

HIVE Digital, a leading player in the cryptocurrency mining sector, has announced a significant acquisition that will bolster its operational capabilities and promote sustainable energy use in Bitcoin mining. The company has agreed to acquire a 200-megawatt power plant from Bitfarms in Paraguay for a total of $85 million.

The acquisition, valued at approximately $85 million, includes compensation for electricity deposits totaling around $19 million and an additional $10 million allocated for outstanding capital commitments. According to the agreement, HIVE will initiate a $25 million payment in the first quarter of 2025, with the remaining $31 million to be paid in installments over a six-month timeline. These payments will be facilitated using HIVE’s existing cash reserves and digital asset holdings.

In addition to the acquisition cost, the deal ensures that Bitfarms is compensated for prior electricity deposits made to local utility firms, alongside coverage for ongoing construction expenses. This strategic move aligns with HIVE’s goal to reach 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy.

HIVE Digital’s Executive Chairman, Frank Holmes, expressed his enthusiasm about the acquisition, stating, “Reaching 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement.” This acquisition not only underscores HIVE’s commitment to sustainability but also demonstrates its strategic approach to expanding its Bitcoin mining capacity through sustainable energy sources.

The acquisition of the partially-completed 200 MW site in Yguazú, Paraguay, marks a pivotal moment for the cryptocurrency mining industry. This deal consists of a $56 million acquisition cost paid over time, accompanied by reimbursements to Bitfarms for prior investments, showcasing a well-structured financial approach. The operational costs are estimated at $400,000 per MW upon completion, highlighting the financial diligence that both companies have maintained throughout the negotiation process.

HIVE’s leadership has actively engaged with Paraguayan officials, including President Santiago Peña, to ensure a smooth integration of their operations within the local context. This engagement fosters a favorable environment for sustainable growth in the region and emphasizes HIVE’s focus on not only boosting its mining capacity but also investing in local communities. HIVE has previously established a 100 MW facility in Paraguay