HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE, BVC:HIVECO) executive chairman Frank Holmes talked with Proactive about the company’s significant operational growth and strategic expansion across both Bitcoin mining and high-performance computing (HPC).
A key driver was a substantial ramp-up in Paraguay, where the company scaled from 6 to 25 exahash—a major contributor to the 306 Bitcoin mined in December, representing a 197% year-over-year increase.
Holmes attributed this growth to strategic capacity expansion and continued investments in more efficient ASIC mining chips, reducing energy consumption from 30 joules per terahash in the last cycle to as low as 11 in newer models.
In addition, HIVE is developing a new 100MW facility in Paraguay, aiming to add another 10 exahash, alongside building out its HPC data center in Manitoba with Bell Canada to power AI workloads using Nvidia chips.
Proactive: Welcome back inside our Proactive newsroom. And joining me now is Frank Holmes. He is Executive Chairman of HIVE Digital Technologies. And Frank, Happy New Year. Good to see you, my friend.
Frank Holmes: Happy New Year to you.
So, exciting news out from the company talking about your December numbers for HIVE. Even though you had some cold weather in certain parts of the world, it still was another “December to remember.”
It was. I like that rhyme. Sound like a rapper? Yeah, it was great. We demonstrated year-over-year, quarter-over-quarter, and month-over-month growth — in what they call a difficult environment. So that is, for me, very thrilling. And how we are able to maintain top efficiency in how we're running our facilities.
It really shows when you have cold weather — and then hot weather in Paraguay. If you get rainy season there, then don’t worry, it’s usually summer in North America and Sweden. So that works out well.
The other exciting part was that just before Christmas, Motley Fool Canada published a series of articles. We were thrilled to see their validation — highlighting that if you miss HIVE, it’s a regret. We’re demonstrating the “dual engine” of growth. Very exciting.
Yeah, the dual engine obviously in the Bitcoin, but also in the computing part of it, right?
The dual engine as HPC and AI — using Nvidia chips. We saw a big bounce this week with Nvidia and Micron. The technology sector and AI space last quarter were under a lot of short pressure — a lot of chatter about a bubble. But they continue to rally, proving this is a huge supercycle. HIVE is positioned with two engines for it. We’re thrilled about that.
Frank, you produced 306 Bitcoin in December — a 197% increase over the same period last year. Is that a combination of capacity and the machines that you use? Give me some thoughts on what led to this growth.
The biggest driver was growth in Paraguay, going from 6 exahash to 25. That was spectacular — the biggest growth in the industry in one year.
We’ve also been upgrading and buying more efficient ASIC miners. These use substantially fewer joules per second. In the last cycle, it was about 30 joules per terahash. Now it's down to 17, and the latest chips are coming in at 11.
That’s innovation — like Moore’s Law — making Bitcoin mining more energy efficient globally. Operators with outdated machines are forced to shut down. But we continuously reinvest part of our cash flow to upgrade our chips and reduce energy use.
Okay. And lastly, Frank, in the news release, you talk about adding more capacity in Paraguay — about 100 megawatts more. Tell me a little about the plans ahead. That’s happening fairly quickly, right?
Yes. This year we’ll add 10 exahash — that’s about five Bitcoin a day, depending on the network difficulty. That’s very attractive additional cash flow.
At the same time, we’re building out a data center in Manitoba with Bell Canada. That project is at full throttle to support our Nvidia chip-based HPC operations.
Some of the team are heading to Winnipeg — a very cold time to visit — or as we say in San Antonio, “super frio.” But we’re growing, and that project will really ramp up. A year from now, our HPC numbers should be substantially better.
Last year we doubled — and this year we’re expecting a multiple factor of that.
Quotes have been lightly edited for style and clarity