HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) announced that it plans to construct a 100 megawatt digital asset mining operation in Paraguay, which will utilize clean energy sourced from the Itaipu hydroelectric dam.
HIVE’s executive chairman Frank Holmes said the opportunity is expected to add up to an additional 6.5 Exahash per second (EH/s) to its Bitcoin mining operations, increasing its global EH/s to 12.1 EH/s.
“This represents a significant milestone in our diversified growth strategy and supports our commitment to expanding our global footprint with data center operations in Canada, Sweden, Iceland and now Paraguay,” Holmes said.
“We are confident that this venture can deliver healthy returns and drive long-term value, fostering economic growth and innovation in the region."
General Legal Counsel Gabriel Ibghy, who speaks Spanish and took part in the company’s initial scoping trip to Paraguay, added that HIVE has made significant progress in identifying a data center site and securing construction and power supply contracts.
The company said after touring Paraguay and meeting with President Santiago Peña and his senior cabinet ministers, it endorses the President’s vision for “a business-friendly Paraguay.”
A large scale infrastructure project such as a 100 MW data center are expected to generate $100 million in stable US dollar revenue for the government’s utility company over three years.
HIVE also intends to hire locally to contribute to regional economy growth and foster education and skill development.
The company also announced that it will leverage its expertise in grid balancing and demand response to foster ongoing industrial growth, while capitalizing on surplus or underutilized power assets.
Future expansions in Paraguay will be based on key factors such as stability in government fiscal policies like energy pricing and taxation, it said.
After seeing Paraguay’s “huge” potential for growth, HIVE said it has acquired an additional 500 Bitmain S21 Pro Antminers to maintain its cadence in upgrading its equipment every month.
“S21 Pro's are the latest and most efficient machines on the market, with a hashrate of 234 Terahash per second and an efficiency of 15 J/TH,” chief operating officer Luke Rossy commented.
“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."
The company said it expects its total operational hashrate to increase to 5.6 EH/s once the miners are fully installed.
As of July 21, 2024, HIVE’S HODL position increased to 2,521 Bitcoin valued at more than $170 million from 2,496 Bitcoin at the end of June.