Bitcoin miner HIVE Digital Technologies has revealed plans to build a 100-megawatt mining site in Paraguay — its first site in the country — expected to more than double its mining hashrate.
The expansion announcement came after HIVE executives toured the country and met with Paraguay President Santiago Peña and senior cabinet ministers, and saw “huge potential for growth,” according to a July 22 statement.
HIVE estimates its hashrate would increase from 5.6 exahashes per second to 12.1 EH/s after the site is completed.
Energy would be sourced from Paraguay’s Itaipu hydroelectric dam, which has become a popular site for Bitcoin miners as it supplies all of Paraguay’s local electricity needs and leaves a large amount of excess electricity for miners to tap into.
However, the announcement comes just three days after Paraguay’s state-run electricity grid operator — Administración Nacional de Electricidad (ANDE) — said it would increase electricity costs for legal cryptocurrency miners.
The price increase is likely to take effect on Aug. 1, but cryptocurrency miners in the region are trying to change their minds, claiming that Paraguay’s economy could see losses of up to $1.5 billion.
HIVE estimates its 100-megawatt facility would generate over $100 million for ANDE over the next three years.
The Bitcoin miner will also aim to hire employees locally, it said.
“We are confident that this venture can deliver healthy returns and drive long-term value, fostering economic growth and innovation in the region.”
Meanwhile, HIVE also announced it acquired another 500 Bitmain S21 Pro Antminers, which should be shipped this month.
Paraguay will be the fourth country HIVE runs mining operations in after Canada, Iceland and Sweden.
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HIVE currently holds 2,521 Bitcoin, worth over $170 million at current prices.
The company’s share price (HIVE) increased 8.4% on the Nasdaq to $4.50 on July 22, Google Finance data shows.
The clean energy-focused miner is now up 2.5% in 2024 after falling over 48% to start the first five months of 2024.
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