HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) has reached a significant milestone in its Bitcoin mining operations, now accounting for 2% of the global network’s computing power, a development that marks its strongest showing in the competitive world of digital currency mining to date.
The Canadian firm, headquartered in Vancouver, said it had surpassed 20 exahash per second (EH/s) of mining capacity after deploying more machines at its newest facility in Paraguay.
In practical terms, this means HIVE’s global fleet of specialised computers is now solving 1 in every 50 equations needed to secure and verify Bitcoin transactions worldwide.
To the uninitiated, Bitcoin mining is a digital process that involves using high-powered computers to solve complex mathematical puzzles. These puzzles underpin the decentralised system that allows Bitcoin to operate without a central authority.
Miners are rewarded with new coins for their efforts. In HIVE’s case, around nine Bitcoin a day, currently worth roughly C$1.4 million at prevailing prices.
This surge in capacity was made possible by the build-out of HIVE’s “Phase 3” site in Valenzuela, Paraguay.
The company has developed three 100-megawatt (MW) facilities in the country, all powered by clean hydroelectricity from the Itaipu Dam, one of the world’s largest renewable energy generators.
That gives HIVE a notable edge in an industry frequently criticised for its environmental footprint.
Why does EH/s matter?
The term “exahash” refers to the speed at which mining equipment can perform the calculations needed to process Bitcoin transactions. One EH/s equals one quintillion (that’s 1 followed by 18 zeroes) guesses per second. A higher EH/s gives miners a better chance of successfully mining a new block and earning Bitcoin.
HIVE’s jump to 20 EH/s means it’s now one of the largest Bitcoin mining companies in the world. It plans to push further, targeting 25 EH/s by U.S. Thanksgiving. According to the company, that would bring daily Bitcoin production to about 12 coins, increasing both revenue and market presence.
Margins and efficiency
The company said its operations are running at an energy efficiency of 18 joules per terahash (J/TH), a measure of how much energy is used to perform mining tasks. The lower the number, the more efficient the operation. HIVE expects that number to fall to 17.5 J/TH once its latest hardware is fully online.
Electricity is the largest cost in Bitcoin mining. HIVE benefits from Paraguay’s stable hydro rates, which help the company maintain a mining margin, the profit after power costs, of around 55%.
Global footprint, local impact
HIVE is not just scaling its operations; it's also expanding its global reach. The company runs data centres in Canada, Sweden, and now Paraguay. It employs engineers across three continents and operates across nine time zones.
But it has also made a point of embedding itself in the communities where it works. In Valenzuela, where its new site is located, HIVE has invested in local schools, installing air conditioning and other infrastructure upgrades. Executive Chairman Frank Holmes said the company wants to leave “a lasting, positive impact” that goes beyond its bottom line.
What it means
The expansion underscores HIVE’s ambitions to become a dominant player in the crypto infrastructure space, particularly at a time when energy efficiency, environmental impact, and regulatory scrutiny are shaping the future of digital assets.
The company is also hedging its bets by investing in AI cloud computing infrastructure, another power-hungry but potentially high-margin business. Management believes the synergy between Bitcoin mining and AI hosting could give it an advantage as digital economies continue to grow.
HIVE says it remains committed to keeping overheads low and is focused on return on invested capital, an important metric for investors trying to weigh the potential risks and rewards of exposure to crypto infrastructure.
As Kilic put it: “Every additional exahash is compounding value for our shareholders.”