HIVE Digital Technologies, one of the largest Bitcoin miners globally, recently completed a major expansion of its hydro-powered mining facility in Paraguay, bringing the site’s total capacity to 300 MW.
The company reports it now contributes over 24 EH/s (exahash per second) to the global Bitcoin network and has generated 289 BTC in October alone. It also posted its highest-ever quarterly earnings at $87.3 million, which is nearly quadruple last year’s figure, with its growth in Paraguay and increased mining power being the main drivers.
Management now states that the business is on track to generate close to $400 million a year from Bitcoin mining, keeping about 50 cents of every dollar in profit after paying for electricity.
Related: Bitcoin Miners Face Crackdown After Stealing US$1B in Electricity From Malaysia’s Grid
HIVE’s Yguazú mine draws electricity from the massive Itaipú Dam hydroelectric plant, giving it access to clean and cheap energy, which is a big part of Paraguay’s appeal to crypto miners. In fact, crypto mining in the country currently operates under a legal framework that treats it as an industrial activity.
Because Paraguay is growing so fast and runs mostly on clean hydropower, it’s getting a reputation as a green crypto mining haven for Bitcoin miners. As such, the country is now pulling in big investments from abroad and turning into a key spot for global mining operations.
The hidden costs
However, not all locals share the optimism. For instance, a community in Villarrica (in the Guairá Department) rebelled against a crypto farm operated by Bitfarms.
For six months in 2024, residents suffered from constant noise (industrial-scale cooling fans ran day and night), causing insomnia, anxiety, and stress-related health problems.
The ‘2029 Collapse’ Scenario
On top of that, the Paraguayan Industrial Union (UIP) has warned that if mining demand continues rising unchecked, Paraguay’s power grid could collapse as early as 2029. This warning links the country’s potential infrastructure failure directly to unregulated crypto mining expansion.
At the same time, HIVE’s push for growth goes hand-in-hand with its focus on clean energy, showing how large-scale crypto mining can be done with an eye on environmental impact. The company’s leadership positions this model as a more responsible alternative to operations predominantly reliant on fossil fuels.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
