HIVE Buys 200MW Paraguay Plant for $56M, Boosts Green Mining

HIVE Digital, a prominent player in the cryptocurrency mining sector, has made a strategic acquisition by agreeing to purchase a 200-megawatt power plant from Bitfarms in Paraguay for a total of $56 million. This significant move, as reported by The Block, includes compensation for electricity deposits totaling approximately $19 million and an additional $10 million allocated for outstanding capital commitments.

The acquisition agreement outlines a payment structure that involves an initial $25 million payment due 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. Furthermore, the deal ensures that Bitfarms is compensated for prior electricity deposits made to local utility firms, alongside coverage for ongoing construction expenses.

This strategic acquisition is valued at roughly $85 million and aims to enhance HIVE’s operational capabilities while promoting sustainable energy use in Bitcoin mining. HIVE Executive Chairman Frank Holmes stated, “Reaching 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement.”

The recent agreement between HIVE Digital and Bitfarms marks a pivotal moment for the cryptocurrency mining industry. By acquiring the partially-completed 200 MW site in Yguazú, Paraguay, HIVE is poised to increase its operational capacity significantly. This acquisition not only underscores the importance of hydroelectric power in Bitcoin mining but also demonstrates HIVE’s commitment to sustainability. The 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.

Under the terms of the agreement, HIVE will make an initial payment of $25 million at closing, expected in Q1 2025, followed by additional payments. This strategic timing aligns with HIVE’s goal to capitalize on the growing demand for clean energy solutions in the mining sector. The acquisition entails operational costs 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 fost