HIVE Digital Technologies (NASDAQ: HIVE) has finalized its acquisition of Bitfarms Ltd.’s 200-megawatt hydroelectric facility in Yguazú, Paraguay. This strategic move is set to enhance the company’s mining capabilities by 317%, elevating its capacity from 6 Exahashes per second (EH/s) to an anticipated 25 EH/s by September 2025.
As one of Wall Street’s leading Bitcoin (BTC) miners, HIVE continues its expansion amidst this year’s BTC price downturn. Since reaching all-time highs in January, the cryptocurrency has seen a 25% decrease and is currently testing levels not seen in over four months.
HIVE Digital Technologies Aiming to Quadruple Mining Capacity by 2025
The $56 million acquisition solidifies HIVE’s standing in the sustainable blockchain infrastructure domain, broadening its global operational footprint to 430 MW across Paraguay, Canada, and Sweden by the third quarter of 2025. Following this deal, HIVE will command 300 MW of mining infrastructure in Paraguay alone, including its previously announced 100 MW project in Valenzuela, expected to go live by June. Frank Holmes, HIVE’s Executive Chairman, expressed his thoughts on the acquisition.
“This acquisition underscores our strategic commitment to sustainable, high-growth expansion,” said Frank Holmes, Executive Chairman of HIVE. “Scaling our operations to 3% of the global network by September 2025, powered entirely by green energy, is a monumental achievement.”
The Yguazú facility’s development will be conducted in two stages. The first phase is slated for completion by April 1, expected to add roughly 6 EH/s of hashrate, with construction already at 80% completion. The second phase, anticipated to wrap up by August 31, aims to add an additional 6.5 EH/s utilizing hydro-cooled ASICs for enhanced efficiency.
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What’s Causing the Decline in Bitcoin Prices?
In spite of the current challenges, HIVE remains dedicated to growth, showing resilience in the face of declining Bitcoin prices and rising mining difficulty that have significantly impacted profit margins.
As of March 18, 2025, Bitcoin is trading at $82,500 per BTC, down 25% from two months prior. On Tuesday, the price fell by 1.8%, nearing the psychological support level of $80,000, marking a four-month low.
In February, BTC dropped by 18%, adversely affecting HIVE’s production levels. The company mined 89 BTC last month, a decline from 102 BTC the previous month. Currently, HIVE is reallocating its resources to enhance its hashrate on various projects.
Bitmain S21+ Hydro ASICs
Aydin Kilic, HIVE’s President & CEO
HIVE has acquired ASICs for a total of 15 EH/s of operational hashrate, which includes its existing 6.5 EH/s capacity and an order of 8.6 EH/s of Bitmain S21+ Hydro ASICs announced last November. The company plans to reveal more ASIC acquisitions in the upcoming months to achieve its 25 EH/s goal, aiming for fleet-wide efficiency of 16.5 Joules per Terahash.
“Our foremost goal is to deliver value to shareholders while promoting sustainable growth in local areas,” stated Aydin Kilic, President and CEO of HIVE. “This acquisition positions us to quadruple our capacity while maintaining one of the most energy-efficient operations in the sector.”
The deal encompasses ownership of a 240 MVA substation with a 200 MW capacity, along with the associated land and facilities. HIVE disbursed $25 million at closing, with the remaining $31 million to be paid in equal installments over a six-month period. The company projects total net costs to complete the site to reach 200 MW will amount to $400,000 per MW.
HIVE is excited to announce the completion of its acquisition of Bitfarms’ 200 MW hydro-powered facility in Paraguay.
This strategic growth represents a 317% increase in mining capacity, propelling HIVE from 6 EH/s today to a projected 25 EH/s by September 2025. pic.twitter.com/udGdIAVndu
New Country President for Paraguay
This expansion aligns with HIVE’s recent appointment of Gabriel Lamas as Country President of Paraguay, announced just a day prior. Lamas, an electrical engineer with over two decades of experience in infrastructure and energy projects, was previously the LATAM Director of Infrastructure and Operations at Bitfarms Ltd. and held roles at Paraguay’s National Utility, ANDE.
“As we emerge as the largest private electricity consumer from ANDE, HIVE will significantly contribute to generating a consistent stream of U.S. dollar-denominated revenue for the government,” Holmes noted regarding Lamas’ appointment.
Last month, the Wall Street Bitcoin miner also appointed Craig Tavares as President and Chief Operating Officer of its Buzz HPC division, which specializes in GPU Cloud and High-Performance Computing (HPC) services.
The combination of Paraguay’s stable regulatory landscape, affordable hydroelectric power, and competitive operational costs positions HIVE favorably for its expansion plans, establishing the company as a predominant player in high-performance computing within Latin America.
