Hive invests $56 million to expand Bitcoin mining in Paraguay

Hive Digital Technologies has acquired Bitfarms’ 200 megawatt Yguazú mining facility in Paraguay for $56 million as part of its expansion plans in Latin America.

The acquisition was completed in January, and the first phase of a 100 MW data center supporting five exahashes per second (EH/s) of ASIC mining was finished in April.

Hive aims to increase its mining capacity to 300 MW in Paraguay by 2025 and raise its total hashrate to 25 EH/s by September, according to CEO Aydin Kilic.

Kilic emphasised that Hive is focused on building long-term relationships with local stakeholders, investing in local hiring, training programs, and vendor partnerships to create a stable and efficient mining ecosystem.

“We are investing in local hiring, training programs and strong vendor partnerships. Our goal is to create a local ecosystem of support that keeps costs stable while boosting uptime and efficiency,” he stated.

Despite a proposed ban on crypto mining in Paraguay due to concerns over electricity supply and rising prices, Hive is working with policymakers to clarify mining regulations and promote cooperation.

Hive maintains a diversified global presence with data centers in Canada, Sweden, and Paraguay, while relocating its headquarters to San Antonio, Texas, to balance geopolitical risks.

“Our growing presence in North and South America creates a balanced footprint resilient to geopolitical or trade policy shocks,” Kilic explained.

The company has also diversified its sourcing of mining equipment to avoid dependencies on any single region, responding to concerns such as US tariffs on Chinese-made ASICs.

Kilic described Bitcoin (CRYPTO:BTC) mining profitability as a physics equation, where controlling operational expenses, power costs, and machine uptime is key.

“Whether you run one rig or ten thousand, it comes down to controlling inputs like opex, power costs, and machine uptime to drive predictable outputs - maximising energy efficiency, minimising downtime and being disciplined with treasury management,” he added.

At the time of reporting, the Bitcoin (BTC) price was $98,693.26.