HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) announces a 100 MW digital asset mining operation in Paraguay, utilizing green energy from the Itaipu hydroelectric dam.
The move is part of HIVE's plans to enhance its global mining capabilities, according to a statement from the company.
The agreements consist of a share purchase agreement between HIVE Paraguay, a subsidiary of HIVE, and the owners of W3X SA, and a construction agreement involving W3X SA and a local contractor.
Aydin Kilic, CEO of HIVE, told shareholders that the team is “hard at work to design and commence building an additional 6.5 Exahash per second (EH/s) Bitcoin mining infrastructure, increasing our global EH/s to 12.1 EH/s.”
However, the company has capped its investment at 100 MW after declining an additional 150 MW due to unexpected fiscal policy changes including a recent proposal to impose a discriminatory 14% energy tariff increase on Bitcoin data centers.
“Like many other public miners, we will explore other countries that offer stable capital for key electrical infrastructure, data centers for the global digital economy, US currency income, and transparent fiscal agreements,” the company said.
Frank Holmes, Executive Chairman of HIVE, stressed the importance of stable fiscal policies in attracting foreign direct investment.
“Stable fiscal policies are crucial in attracting and maintaining continued foreign direct investment from public companies and US institutional investors,” Holmes said. He noted that data centers in Paraguay act as a currency hedge, bringing stable U.S. dollar revenue to the government-owned utility.
Holmes expressed concerns over the impact of the tariff hike on long-term investment decisions. Despite initial plans for larger investments, including acquiring land and negotiating PPAs for multiple projects, the proposed tariff increase has led to a reduction in investment and a delay in HIVE’s HPC data center strategy.
Nevertheless, the 100 MW project aims to attract substantial foreign direct investment into Paraguay and provide essential capital for converting high-voltage electricity into usable power.