Bitcoin miner Hive Digital plans to establish a 100-megawatt zero emission mining facility in Paraguay, powered by the Itaipu hydroelectric dam.
Clean business
Hive Digital Technologies announced its first venture in Paraguay with a 100-megawatt mining site, which is expected to more than double the company’s mining capacity, boosting its hashrate from 5.6 exahashes per second to 12.1 EH/s.
The decision followed a visit by Hive executives to Paraguay, where they met with President Santiago Peña and senior ministers.
Based on the reports they saw great potential for growth, and decided to seize the opportunity.
Renewable energy for zero emission electric miners
The new facility will draw power from the Itaipu hydroelectric dam, which provides all of Paraguay’s local electricity needs and offers surplus clean, renewable energy for mining operations.
The dam became a favored energy source for Bitcoin miners due to its abundant, clean and sustainable power supply.
Shortly before the announcement, Paraguay’s state-run electricity grid operator, Administración Nacional de Electricidad, the ANDE declared it would raise electricity prices for legal cryptocurrency miners.
This price hike is set to start on August 1. Cryptocurrency miners in the region are lobbying against the increase, arguing that it will lead to economic losses of up to $1.5 billion for local miners and for Paraguay.
Hive Digital estimates its new facility will generate over $100 million in revenue for ANDE over the next three years.
Stock price on rollercoaster
Hive Digital wants to hire local employees for their new facility, expressing confidence that this project will yield substantial returns and drive long-term economic growth and innovation in the region.
In addition to the new site in Paraguay, Hive Digital has acquired 500 Bitmain S21 Pro Antminers, scheduled to arrive this month.
After the successfull deployment of the machines in Paraguay, the country will be the fourth region where Hive operates, following Canada, Iceland, and Sweden.
Right now Hive holds 2,521 Bitcoin, valued at over $170 million at current prices. The investors are happy with Hive’s expansion plans, the firm’s share price on the Nasdaq jump by 8.4% to $4.50.
This seems good, but worth to mention there was a drop of over 48% in the first five months of 2024, and now the clean energy-focused miner’s stock is now up only 2.5% for the year.
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