Paraguay President: The country has made Bitcoin legal tender.

Paraguay President: The country has made Bitcoin legal tender.

In a significant move towards digital currency adoption, Paraguay has legalized Bitcoin as a form of tender. This development comes at a time when the country is also making strides in renewable energy and sustainable infrastructure, with HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) standing to benefit from this shift.

HIVE Digital Technologies, a leading provider of Bitcoin mining services, has seen a substantial increase in its mining capabilities. In May 2025, the company reported a 58% increase in peak Bitcoin mining hashrate, rising from 6.6 EH/s in April to 10.4 EH/s. This growth can be attributed to the successful energization of the company’s 100 MW hydro-powered facility in Paraguay [1].

The legalization of Bitcoin in Paraguay aligns with the country's commitment to renewable energy and sustainable infrastructure. Paraguay is already known for its large-scale hydroelectric power generation, with the Itaipu Dam being one of the largest in the world. This infrastructure supports HIVE’s operations, which are entirely powered by hydroelectric energy [2].

The legal tender status of Bitcoin in Paraguay is expected to boost demand for digital currencies, potentially increasing the value of Bitcoin and, consequently, the earnings of mining companies like HIVE. The company’s chairman and co-founder, Frank Holmes, highlighted the operational strength and efficiency of HIVE’s dual-engine model, which integrates rapid scaling high-efficiency Bitcoin mining with its Buzz HPC cloud division [1].

HIVE is on track to reach 11.5 EH/s by the end of June and aims to achieve 25 EH/s by the fourth quarter of 2025. With this expansion, the company expects to produce over 12 Bitcoin per day and lower its production cost to under $50,000 per Bitcoin [1].

The legalization of Bitcoin in Paraguay could also have broader economic implications. The country's GDP is $39 billion, with a growth rate of 4.8% as of 2018. Paraguay's economy is heavily reliant on agriculture, particularly soy production, but the legalization of Bitcoin could diversify its economic base and attract more investment in the digital currency sector [4].

While the legalization of Bitcoin is a positive step for Paraguay, the country still faces challenges such as corruption and limited progress on structural reform. However, the move towards digital currencies could help mitigate some of these issues by promoting transparency and reducing the need for physical currency [4].

In conclusion, the legalization of Bitcoin as tender in Paraguay presents significant opportunities for companies like HIVE Digital Technologies. The company's growth in mining capabilities and commitment to renewable energy align well with Paraguay's economic goals and could lead to substantial benefits for both the company and the country.

References:
[1] https://www.proactiveinvestors.com/companies/news/1072552/hive-digital-technologies-producing-more-than-5-bitcoin-per-day-after-growing-hashrate-1072552.html
[2] https://www.gurufocus.com/news/2912434/retransmission-hive-digital-technologies-achieves-58-peak-hashrate-growth-in-one-month-surpasses-10-ehs-in-may-2025-and-remains-on-track-to-reach-25-ehs-by-yearend-hive-stock-news
[4] https://www.forbes.com/places/paraguay/