HIVE Digital, a leading Bitcoin mining company in Canada, has agreed to buy Bitfarms’ 200 MW hydroelectric mining facility in Paraguay. This purchase will enhance HIVE’s mining capacity to 25 EH/s by September.
In a press release dated January 28, the firm announced that the power surge would increase its capacity by over 400% from its current capacity of 6 EH/s. The new facility, Yguazú, will be developed in two phases.
🚨 JUST IN: $HIVE Acquires Bitfarms’ 200 MW Paraguay Site, Targeting 400% Global Hashrate Growth by September ⬇️ pic.twitter.com/Jn6IFFNuYE
— HIVE Digital Technologies (@HIVEDigitalTech) January 28, 2025
The first phase, which is currently 80% complete, will become active by the second quarter and provide an additional 6 EH/s. The second phase, projected for completion by August, will add a further 6.5 EH/s through the use of Bitmain S21+ hydro-cooled ASICs.
The $56 million agreement covers a central power station and related facilities. According to the announcement, HIVE Digital will pay an initial deposit of $25 million, with the remaining balance to be transferred over six months.
A New Bitcoin Mining Acquisition
HIVE intends to use its liquid assets (cash and cryptocurrency holdings) to fund the project’s acquisition and pay the building costs to complete the site. After the purchase, HIVE’s executive chairman, Frank Holmes, reaffirmed the company’s goal of controlling a 3% share of the global Bitcoin mining network.
This announcement caused HIVE shares to increase 5% in pre-market trading. This gain was a significant improvement, given that the firm’s shares had declined by 10% the previous day.
The share price decline was a reaction to market fears about the emergence of a sophisticated artificial intelligence startup, DeepSeek, which caused a massive disruption in the US stock market, especially for American AI companies.
Last year, the company started building a 100-MW mining facility in Paraguay and ordered 6,500 ASIC miners from Canaan Inc., a popular vendor. Earlier this year, the company revealed that its 2024 operational hash rate was 47% higher than its 2023 operational hash rate.
This year, the Bitcoin miner aims to achieve a 150% increase.
