Hive Digital reveals plans to expand its bitcoin mining operations in Paraguay by over 400%. Chairman Frank Holmes highlights the benefits of local hydroelectric resources and notes the economic advantages for the government. Despite recent energy fee increases, the company remains committed to expanding its presence in Paraguay.
Hive Digital, a leader in the bitcoin mining industry, is set to significantly enhance its operations in Paraguay. During The Street’s Roundtable, Chairman Frank Holmes announced the ambitious goal of increasing the company’s capacity by over 400% in this South American nation, renowned for its abundant hydroelectric resources. This expansion is particularly crucial as Paraguay serves as one of the primary bases for Hive Digital’s growth efforts.
Holmes described the extensive plans to elevate operations, forecasting that over the next nine months, the company would dramatically ramp up its capacity, thanks to Paraguay’s ample hydroelectric surplus. He noted, “We’re going to go up above 400%. You got to think that we’re going to be having triplets over the next nine months as we build out Paraguay, which has a huge surplus of hydroelectricity.”
Moreover, the favorable conditions in Paraguay for bitcoin mining are beneficial for both Hive Digital and the local government. The company aims to utilize the surplus energy from the Itaipu dam—one of the largest globally—selling it to bitcoin companies at higher dollar rates rather than allowing it to be sold to Brazil at lower prices. Holmes remarked, “We’re actually a great engine for the government because they’re going to get paid U.S. dollars every month for that electricity, and we help build out the infrastructure within the community.”
Hive Digital had announced its foray into Paraguay in July, coinciding with increases in power fees for bitcoin miners, as the government sought to secure a larger share of the industry’s profits. This move has raised concerns among some companies about the feasibility of continuing mining activities. However, President Santiago Pena indicated that despite the price escalations affecting profit margins, these changes would not deter mining operations in the country.
In summary, Hive Digital is strategically positioning itself for significant growth in Paraguay, targeting a 400% increase in operational capacity through utilization of the nation’s hydroelectric resources. The company’s expansion aims to foster local economic benefits while adapting to the recent government-imposed energy fees, which, despite concerns, are not expected to deter continued mining activities in the region. Hive Digital’s proactive approach reflects the promising opportunities within Paraguay’s evolving bitcoin mining environment.
Original Source: news.bitcoin.com
