HIVE Digital Finalizes 100MW Hydroelectric Bitcoin Mining Expansion in Paraguay
Summary of Hive Digital Technologies' Expansion Plans in Paraguay
- Hive Digital Technologies will construct a 100 MW hydroelectric-powered data center at Yguazú, Paraguay.
- The project aims to boost global Bitcoin mining capacity to 35 EH/s by 2026.
- This expansion follows the acquisition of Bitfarms' Paraguayan operations in January 2025.
- It will increase the renewable mining capacity at the site to 400 MW, making it Paraguay's largest facility.
- The power source will be the Itaipú Dam, noted for its low cost and minimal carbon footprint.
Operational Scale and Strategic Partnerships
- Hive's Bitcoin mining power increased from 6 EH/s in early 2025 to nearly 22 EH/s by October, targeting 25 EH/s by year-end.
- Construction for the new expansion to start in early 2026, with completion in Q3 of the same year.
- Plans include a fivefold increase in high-performance computing and AI operations.
- Strategic partnerships, including with Bell Canada, support infrastructure and diversification in AI workloads.
Impacts on Local Economy and Mining Leadership
- Hive's expansion strengthens Paraguay as a Bitcoin mining hub, offering economic and environmental benefits.
- The Yguazú site produces 8.5 BTC daily, aiding local employment and community investments.
- Low operational costs due to renewable energy usage help maintain profitability amid rising global hashrates.
- Supported by Paraguay's pro-crypto regulations, exempting mining energy use from taxes until 2027.
Stock Performance
- Despite these developments, Hive's stock fell 3.58% on October 21, with a weekly drop of over 21%.
- The stock experienced a year-to-date gain of almost 85% despite recent declines.
These initiatives underscore Paraguay's role in clean energy and mining innovation, highlighting Hive's commitment to sustainable development in Latin America.