Hive Digital plans a 400% bitcoin mining expansion in Paraguay, capitalizing on hydroelectric energy. Learn how this move impacts Paraguay’s economy and the crypto sector.
Hive Digital Expands Paraguay Bitcoin Mining Operations
Hive Digital, a major publicly traded bitcoin mining company, has announced a significant expansion in Paraguay. At The Street’s Roundtable, Executive Chairman Frank Holmes revealed plans to increase the company’s mining capacity by more than 400% by leveraging Paraguay’s abundant hydroelectric energy.
Paraguay’s Energy Surplus Fuels Expansion
Holmes emphasized Paraguay’s favorable conditions for bitcoin mining, particularly the excess power generated by the Itaipu Dam, one of the world’s largest hydroelectric plants. Instead of selling electricity to Brazil at lower rates, Paraguay sells it to bitcoin miners at a higher price in U.S. dollars, benefiting the country’s economy.
We’re actually a great engine for the government because they’re going to get paid U.S. dollars every month for that electricity, and we help build out the infrastructure within the community, Holmes said.
Expansion Continues Despite Power Fee Hikes
Hive Digital first announced its entry into Paraguay in July 2024, shortly after the government imposed higher electricity fees on bitcoin miners to increase state revenue. While some companies considered leaving due to rising costs, Hive Digital remains committed to its Paraguay expansion.
Paraguayan President Santiago Peña previously stated that the higher fees would reduce profit margins but would not drive mining firms out of the country. Hive Digital’s latest announcement confirms its long-term investment strategy in the region.
Future Growth and Infrastructure Development
Holmes compared the expansion to “having triplets over the next nine months,” referring to the rapid growth expected from the company’s investment. Hive Digital’s expansion in Paraguay aligns with its global strategy to optimize energy-efficient bitcoin mining.
Stay updated on Hive Digital’s expansion and Paraguay’s evolving bitcoin mining policies. Follow our coverage for the latest developments in the crypto mining industry.
