HIVE Digital Technologies Ltd., a Bitcoin miner from Wall Street listed on the Nasdaq under the ticker symbol HIVE, has revealed plans to build a 100-megawatt BTC mining operation in Paraguay. This move is part of the company’s strategy to double its revenue and significantly increase its hashrate capacity. The Vancouver-based company is known for its green-focused data centers and aims to power the new facility using clean energy from the Itaipu hydroelectric dam. HIVE expects this expansion to boost its global Bitcoin mining capacity from 5.6 to 12.1 exahash per second (EH/s) within the next year.
Frank Holmes, the Executive Chairman of HIVE, expressed optimism about the venture, calling it a significant milestone in the company’s diversified growth strategy. He stated that they are confident the project can deliver healthy returns, driving long-term value and supporting economic growth and innovation in the region. The decision to build the data center in Paraguay followed meetings between HIVE executives and the Paraguayan President Santiago Peña, where the company emphasized the importance of government stability, especially in areas such as energy pricing and taxation, for future expansion considerations.
In a similar move, Marathon Digital, another Bitcoin miner from Wall Street, made headlines recently when it was ordered to pay $138 million to the founder of a competing mining company, Michael Ho. Ho, who allegedly developed a growth strategy for Marathon, did not receive the appropriate compensation. The planned data center in Paraguay is expected to generate over $100 million in revenue for Paraguay’s utility company over the next three years. HIVE intends to leverage its expertise in grid balancing and demand response to support industrial development in the country.
Last year, HIVE rebranded from HVE Blockchain to Digital to reflect the evolving nature of its business. In addition to cryptocurrency mining, the company has expanded into high-performance computing (HPC) data centers and Artificial Intelligence (AI). The company recently announced the acquisition of 500 Bitmain S21 Pro Antminers, the latest in mining technology, to further upgrade its fleet and strengthen its HODL position. As of July 21, 2024, HIVE reported holding 2,521 Bitcoin, worth over $170 million based on current market value.
According to the latest financial report, HIVE achieved an annual revenue of $114.5 million and an adjusted EBITDA of $37.5 million in the fiscal year 2024. During the 12 months ending March 31, 2024, the company mined 3,123 Bitcoin and held 2,287 Bitcoin, valued at $161.3 million on its year-end balance sheet. The Paraguay project is still subject to final agreements, due diligence, board approval, and regulatory clearances, with HIVE stating that further details will be disclosed in the near future.
The move to construct a new Bitcoin mining operation in Paraguay is a strategic decision by HIVE to expand its global mining capacity and revenue. By harnessing clean energy from the Itaipu hydroelectric dam, the company aims to not only increase its hashrate but also support economic growth and innovation in the region. With meetings between HIVE executives and Paraguayan President Santiago Peña emphasizing the importance of government stability, the company remains confident in the success of its venture.
In the midst of industry developments, such as Marathon Digital’s legal dispute with a former executive, HIVE’s Paraguay project stands out as a positive initiative. The data center is projected to bring significant revenue to Paraguay’s utility company, showcasing the mutual benefits of such partnerships. HIVE’s focus on sustainable practices and technological advancements, such as the acquisition of the latest mining equipment, positions the company for continued success in the competitive cryptocurrency mining sector.
With a strong financial performance in the fiscal year 2024, HIVE has demonstrated its ability to generate revenue and maintain a solid position in the market. The company’s commitment to growth and innovation, as evidenced by its expansion into HPC data centers and AI, further highlights its forward-looking approach. As the Paraguay project progresses through final agreements and regulatory clearances, HIVE remains poised to capitalize on this opportunity and continue its trajectory of success in the digital asset mining industry.
