Hive Digital Technologies has announced plans to develop a 100MW crypto mining site in Paraguay, which will use clean energy sourced from the Itaipu hydroelectric dam. This is expected to double Hive’s hash rate.
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The digital asset mining company and “green” data center builder revealed the plans after its executives toured the country and met with its President, Santiago Peña and some cabinet ministers.
Hive Digital expects to double its figures
The company is upbeat that the latest development will also boost its earnings, in addition to adding an estimated 6.5 Exahash per second (EH/s) to its Bitcoin mining operations. This will increase its global EH/s to 12.1 EH/s.
“This represents a significant milestone in our diversified growth strategy and supports our commitment to expanding our global footprint,” said Hive’s executive chairman Frank Holmes.
Hives already have other operations in Canada, Sweden, and Iceland.
“We are confident that this venture can deliver healthy returns and drive long-term value, fostering economic growth and innovation in the region.”
– Holmes.
The new site will leverage energy from Itaipu Dam, which has become a hotbed for Bitcoin miners. The dam supplies all of Paraguay’s domestic electricity needs and leaves surplus electricity for Bitcoin miners to utilize.
"We are thrilled to announce our plan for a 100 MW project in Paraguay, utilizing green and clean energy sourced from the Itaipu hydroelectric dam," says Frank Holmes, HIVE’s Executive Chairman. "This potential opportunity is expected to add up to an additional 6.5 Exahash per… pic.twitter.com/ZqSl8WvAWq
— HIVE Digital Technologies (@HIVEDigitalTech) July 22, 2024
Potential tariff increase might weigh on Hive’s plans
Hive’s Monday announcement came three days after Paraguay said it would increase electricity costs for legal crypto miners. Grid operator, Administración Nacional de Electricidad (ANDE), revealed that the price increase will be effective August 1.
However, cryptocurrency miners are reportedly trying to negotiate with the authorities to change their minds. They claim that the country might incur losses of up to $1.5 billion.
Also read: Paraguay considers kicking crypto miners to the curb
Hive estimates its operation will generate over $100 million for the government’s power utility company in the next three years. Meanwhile, Hive, which holds 2,521 Bitcoin also announced it acquired an additional 500 Bitmain S21 Pro Antminers, whose shipping is expected this month, to maintain its pace in upgrading its equipment every month.
“These units are expected to ship this month and are integral to the company’s strategy of continually upgrading its fleet while growing its HODL position,” said chief operating officer, Luke Rossy.
