HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) announced it has signed a binding letter of intent (LOI) to acquire Bitfarms Ltd's Yguazú 200-megawatt (MW) hydro-powered Bitcoin mining facility in Paraguay for $56 million.
The acquisition is expected to increase HIVE's global Bitcoin mining capacity from 6 Exahash per second (EH/s) to 25 EH/s by September 2025, according to a statement from the company.
The transaction will also elevate HIVE's total operational capacity in Paraguay to 300 MW, contributing to a global footprint of 430 MW, including existing facilities in Canada and Sweden.
The Yguazú facility will be developed in two phases. Phase 1 is scheduled for completion by April 2025 and will add approximately 6 EH/s of capacity, expected to be fully operational by Q2 2025.
Phase 2 is expected to complete by August 2025, adding 6.5 EH/s with advanced hydro-cooled ASICs.
HIVE estimates the total cost to complete the site to 200 MW at $400,000 per MW.
Separately, HIVE’s previously announced 100 MW project in Paraguay is on track for energization by June 2025, contributing an additional 6.5 EH/s.
To meet its 25 EH/s target, HIVE has secured ASICs for 15 EH/s, with plans for further acquisitions in the coming months. The company aims for a global fleet efficiency of 16.5 joules per terahash, enhancing energy efficiency and reducing Bitcoin production costs.
Frank Holmes, Executive Chairman of HIVE, described the acquisition as a milestone for sustainable innovation.
“This acquisition demonstrates our focus on sustainable growth and innovation,” Holmes said in a statement.
“Reaching 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement.”
Aydin Kilic, CEO of HIVE, highlighted the company’s commitment to shareholders and local communities.
“Our strategy is rooted in delivering consistent value to shareholders while fostering sustainable local development,” Kilic said. “This expansion ensures we maintain our track record as one of the most efficient Bitcoin miners globally."
The $56 million acquisition includes ownership of a 240 MVA substation and all associated land and facilities. Payment terms include $25 million payable at closing and $31 million in equal installments over six months following closing.
HIVE will also assume $19 million in deposits to Paraguay’s utility company ANDE and remaining construction costs.
The transaction will be financed through HIVE’s existing cash and digital currency reserves.
Shares of HIVE were up 1.5% at midday in Canada and 0.7% in New York.