HIVE Digital Technologies Ltd., the Bitcoin miner from Wall Street (Nasdaq: HIVE) announced plans to construct a 100-megawatt BTC mining operation in Paraguay, aiming to double its revenue and significantly boost its hashrate capacity.
The Vancouver-based company, which specializes in green-focused data centers, intends to power the facility using clean energy from the Itaipu hydroelectric dam. This expansion is expected to increase HIVE’s global Bitcoin mining capacity from 5.6 to 12.1 exahash per second (EH/s) within the next year.
Frank Holmes, Executive Chairman of HIVE
“This represents a significant milestone in our diversified growth strategy,” Frank Holmes, HIVE’s Executive Chairman, commented. “We are confident that this venture can deliver healthy returns and drive long-term value, fostering economic growth and innovation in the region.”
The announcement follows meetings between HIVE executives and Paraguayan President Santiago Peña, during which the company endorsed Paraguay’s business-friendly environment. HIVE emphasized that government stability in areas such as energy pricing and taxation would be crucial for future expansion considerations.
Last week, Marathon Digital, another Bitcoin miner from Wall Street, also made headlines when it was ordered to pay $138 million to the founder of a competing mining company. Michael Ho from Hut 8 allegedly developed a growth strategy for Marathon but did not receive the appropriate compensation.
The proposed data center is projected to generate over $100 million in US dollar revenue for Paraguay’s utility company over the next three years. HIVE plans to leverage its experience in grid balancing and demand response to support industrial development in the country.
Last year, the company rebranded from HVE Blockchain to Digital to reflect the evolving nature of its business. In addition to focusing on cryptocurrency mining, the company expanded into high-performance computing (HPC) data centers and the growing trend of mass adoption of Artificial Intelligence (AI).
HIVE Digital to build data center in Paraguay, targeting higher hash rate https://t.co/231n1xc4a6 pic.twitter.com/wdQfsgtwFh
— HIVE Digital Technologies (@HIVEDigitalTech) July 22, 2024
HIVE Buys 500 Mining Rigs
Luke Rossy, HIVE’s Chief Operating Officer, also revealed the acquisition of 500 Bitmain S21 Pro Antminers, the latest in mining technology. “These units are expected to ship this month and are integral to the Company’s strategy of continually upgrading its fleet while growing its HODL position,” Rossy explained.
As of July 21, 2024, HIVE reported holding 2,521 Bitcoin, up from 2,496 at the end of June. With Bitcoin’s current market value, this represents over $170 million in digital assets on the company’s balance sheet.
According to the latest financial report from the publicly traded miner, the company achieved an annual revenue of $114.5 million and an adjusted EBITDA of $37.5 million in the fiscal year 2024. Over 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 remains subject to final agreements, due diligence, board approval, and regulatory clearances. HIVE stated that further details will be provided in the near future.
