HIVE Digital to Establish 100 MW Bitcoin Mining Farm in Paraguay

Mining firm HIVE Digital Technologies Ltd. has unveiled plans to construct a data centre for Bitcoin mining with a capacity of 100 MW in Paraguay.

“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

The facility will harness green electricity from the Itaipu Dam, which fully meets the country’s energy needs.

“This potential opportunity is expected to add up to 6.5 EH/s to our Bitcoin mining operations, increasing our total hash rate to 12.1 EH/s. This represents a significant milestone for our diversified growth strategy and affirms our commitment to expanding our global presence with data centre operations in Canada, Sweden, Iceland, and now Paraguay,” stated HIVE’s Executive Chairman Frank Holmes.

HIVE identified the stability of fiscal policy and energy pricing as key factors for business development in the South American country. The company estimates that the planned facility will generate approximately $100 million in revenue for the Paraguayan government over three years.

In July, the state operator of the national power grid, ANDE, warned industry participants of a tariff increase starting August 1. This raised doubts about the prospects of the mining business in the country. 

Experts noted the relocation of Bitcoin miners to neighbouring Argentina and Brazil amid previous electricity price hikes.

In 2023, analysts at Hashrate Index identified Paraguay as a promising Bitcoin mining hub, citing the presence of the Itaipu Dam, the second most powerful in the world, as a key factor.

Back in April, a group of lawmakers in the country proposed a temporary ban on Bitcoin mining. Hashlabs Mining co-founder Jaran Mellerud estimated the losses to the state from such a move at $200 million in annual revenue.

The Paraguayan Senate halted the consideration of the bill proposing a moratorium on mining.