HIVE Digital Technologies, a prominent Bitcoin mining company, has announced its ambitious plans to establish a 100-megawatt mining facility in Paraguay. This move marks the company’s first foray into the South American nation and is poised to significantly amplify its mining capabilities.
Following an insightful tour by HIVE executives, which included meetings with Paraguayan President Santiago Peña and key cabinet members, the company confirmed its decision to expand due to the “huge potential for growth” in the region. This strategic expansion is expected to boost HIVE’s current hashrate from 5.6 exahashes per second to an impressive 12.1 EH/s.
Advantages of Paraguay’s Itaipu Dam
The chosen site for this new facility will capitalize on the hydroelectric power from Paraguay’s renowned Itaipu Dam. This dam not only meets all of Paraguay’s local electricity requirements but also produces a surplus, primarily attracting Bitcoin miners for its cost-efficiency and sustainability.
The expansion announcement coincides with a recent declaration from Paraguay’s state-run electricity grid operator, ANDE, which plans to raise electricity costs for legal cryptocurrency miners starting August 1. Despite these impending cost increases, cryptocurrency miners in the area are lobbying for a reconsideration, arguing that the hikes could potentially result in economic losses upwards of $1.5 billion for Paraguay.
Projected Contributions and Local Employment
HIVE’s proposed 100-megawatt site is not just a technological investment but also a significant economic contributor, projected to generate over $100 million for ANDE over the next three years. Moreover, HIVE intends to bolster the local economy by prioritizing the hiring of Paraguayan employees.
In addition to the expansion, HIVE has also recently acquired an additional 500 Bitmain S21 Pro Antminers, scheduled for shipment within the month. This expansion extends HIVE’s global footprint, adding Paraguay to a list that includes Canada, Iceland, and Sweden, where HIVE already operates.
Currently, HIVE holds 2,521 Bitcoin, valued at over $170 million. The announcement positively impacted HIVE’s stock, which saw an 8.4% increase to $4.50 on Nasdaq as of July 22. Despite a rough start in 2024 with a 48% drop over the first five months, the company’s shares have recovered by 2.5% this year.
| Aspect | Detail |
|---|---|
| New Facility Location | Paraguay |
| Expected Hashrate Increase | From 5.6 EH/s to 12.1 EH/s |
| Power Source | Itaipu Hydroelectric Dam |
| Economic Contribution | $100 million to ANDE over three years |
| Employment Strategy | Prioritizing local hiring |
| Additional Equipment | 500 Bitmain S21 Pro Antminers |
| Global Presence | Operations in Canada, Iceland, Sweden, and Paraguay |
HIVE Digital Technologies’ expansion into Paraguay represents a significant step forward in its global strategy and a robust commitment to sustainable mining practices. By leveraging Paraguay’s hydroelectric resources and focusing on economic contributions and local employment, HIVE is set to significantly enhance its operational capabilities and foster regional economic growth.
Featured image credit: slon.pics via Freepik
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