HIVE Expands Bitcoin Mining in Paraguay, Targets 25 EH/s by September

HIVE Digital Technologies, a prominent Bitcoin (BTC) mining company, is strategically focusing on the Latin American market, particularly Paraguay, to capitalize on its stable geopolitical environment, low-cost hydro energy, and government support for foreign investment. This move comes as several crypto-focused organizations, including other BTC mining companies, are considering a return to the US market due to geopolitical uncertainties.

In an exclusive interview, Aydin Kilic, the president and CEO of HIVE Digital Technologies, highlighted Paraguay's long-term potential. The company has already made significant strides in the region by acquiring Bitfarms’ 200 MW Yguazú facility for $56 million in January. The first phase of the 100 MW data center at this site was completed in April, supporting 5 EH/s of Application-Specific Integrated Circuit (ASIC) mining. HIVE plans to further expand its mining facilities in Paraguay to 300 MW by 2025, aiming to increase the hashrate to 25 EH/s by September.

HIVE has been actively building strong relationships with local stakeholders in Paraguay, investing in local hiring, training programs, and vendor partnerships. This strategy aims to create a supportive local ecosystem that maintains stable costs while enhancing uptime and efficiency. Despite a proposed ban on crypto mining in Paraguay due to concerns over electricity supply and rising prices, HIVE is actively engaging with policymakers to ensure clarity and cooperation in mining legislation.

HIVE's global diversification strategy includes data centers in Canada, Sweden, and Paraguay, with plans to relocate its headquarters to San Antonio, Texas. This balanced footprint across North and South America is designed to be resilient against geopolitical or trade policy shocks. The company has also diversified its sourcing channels for ASICs and electrical components to avoid dependencies on a single region, mitigating concerns about rising costs due to US tariffs on China.

To ensure scaling from 6 to 25 EH/s, HIVE has secured key ASIC orders, power access through long-term Power Purchase Agreements (PPAs), and expanded engineering capacity across three continents. This approach addresses market and technological uncertainties, positioning the company for sustainable growth. Kilic views Bitcoin mining profitability as a physics equation, emphasizing the importance of controlling operational expenses, power costs, and machine uptime to drive predictable outputs and maximize energy efficiency.