HIVE Digital Technologies, a prominent player in Bitcoin mining, has unveiled a bold initiative to establish a 100-megawatt mining facility in Paraguay. This expansion marks the company’s inaugural foray into the Paraguayan market and is poised to more than double its current mining hashrate.

The announcement follows a strategic visit by HIVE’s executives to Paraguay, where they engaged with President Santiago Peña and key cabinet officials. Their tour highlighted what they perceive as immense potential for growth in the region, as detailed in a statement released on July 22.

Upon completion, HIVE anticipates that its hashrate will surge from 5.6 exahashes per second to a formidable 12.1 EH/s.

Powering Growth with Hydroelectric Energy

The new mining site will leverage energy from Paraguay’s Itaipu hydroelectric dam, renowned for its capacity to meet the country’s entire electricity demand while providing a surplus for Bitcoin mining operations. This sustainable energy source has made it a favored choice among miners.

However, the timing of this announcement is notable, as it coincides with a recent development where Paraguay’s state-run electricity grid operator, Administración Nacional de Electricidad (ANDE), disclosed plans to hike electricity costs for legal cryptocurrency miners. This price increase is scheduled to be implemented on August 1. In response, local miners are advocating for a reconsideration of this decision, citing potential economic losses up to $1.5 billion for Paraguay.

Economic Impact and Local Employment

Despite the looming cost increase, HIVE projects that its new 100-megawatt facility will generate over $100 million in revenue for ANDE over the next three years. The company also aims to bolster the local job market by hiring employees from the region.

“We are confident that this venture will yield substantial returns and contribute to long-term economic growth and innovation in Paraguay,” stated a HIVE representative.

In tandem with its Paraguayan expansion, HIVE has also announced the acquisition of an additional 500 Bitmain S21 Pro Antminers, scheduled for shipment this month.

HIVE’s Global Presence and Market Performance

With Paraguay joining its roster, HIVE will now operate mining facilities across four countries: Canada, Iceland, Sweden, and Paraguay. The company currently holds 2,521 Bitcoin, valued at over $170 million based on current market prices.

On July 22, HIVE’s share price on the Nasdaq experienced a notable increase of 8.4%, reaching $4.50, according to Google Finance. Despite a significant drop of over 48% earlier in the year, HIVE’s stock has rebounded, showing a 2.5% gain in 2024 to date.