Hive Digital Accelerates Bitcoin Mining Capacity With Paraguay Expansion

Hive Digital Technologies has completed the first phase of its 100-megawatt Bitcoin mining facility in Yguazú, Paraguay, marking a major expansion of its operations in Latin America. According to Crypto.news, the announcement caused Hive Digital's shares to rise 2% in pre-market trading on April 21. The newly energized facility now has the capacity to host 5 exahash per second (EH/s) for ASIC miners, with 200 petahash per second already running using the company's in-house BUZZ Miners. The company expects to scale to 5 EH/s in Paraguay and 11.5 EH/s globally by the end of Q2 2025.

The strategic move into Paraguay represents a different approach compared to many Bitcoin miners who are returning to the United States due to geopolitical concerns. In an exclusive interview with Cointelegraph, Hive Digital Technologies' President and CEO Aydin Kilic emphasized that Paraguay offers compelling advantages through "geopolitical stability, low-cost hydro energy, and a government open to foreign investment."

Strategic Acquisition Fuels Rapid Growth

The Paraguay facility was acquired from Bitfarms in January 2025 for $56 million, though some reports cite the transaction value at $85 million. According to TipRanks, this acquisition is set to increase Hive's mining capacity by an impressive 317% from 6 EH/s to a projected 25 EH/s by September 2025.

Hive's Chairman Frank Holmes explained in an interview with CoinDesk that Paraguay made strategic sense because of its abundant hydroelectric resources from the Itaipu Dam. "It has the largest dam in the Western hemisphere, shared 50/50 with Brazil. It's 14 gigawatts and like eight kilometers long," Holmes noted, highlighting the renewable energy advantage for the company's operations.

The company has also appointed Carlos A. Torres Pérez as operations and project manager in Paraguay, reinforcing its commitment to local operations. Mugglehead reports that Luke Rossy, Hive's Chief Operating Officer, stated that more than 65% of the infrastructure needed to host over 20,000 miners is already in place, with civil works for the site's substation exit bay completed.

Renewable Energy Powers Mining Operations

A key factor in Hive's strategic expansion into Paraguay is the country's abundant renewable energy resources. Paraguay generates nearly 100% of its electricity from hydroelectric sources, making it ideal for environmentally conscious mining operations. Liquidity Provider reports that the country's hydropower deals allow miners to access low-cost electricity at fixed rates, insulating companies from future energy price fluctuations.

Kilic told Cointelegraph that Hive has spent over a year developing strong relationships with local stakeholders in Paraguay. The company is "investing in local hiring, training programs and strong vendor partnerships" with the goal of creating "a local ecosystem of support that keeps costs stable while boosting uptime and efficiency."

This renewable energy focus aligns with broader industry trends. As Bulletin of the Atomic Scientists reports, Bitcoin mining companies increasingly seek regions with surplus renewable energy, though debates continue about whether this promotes broader renewable energy development or simply increases overall resource consumption.

Market Growth and Future Prospects

Hive's expansion occurs during a period of substantial growth in the cryptocurrency mining sector. According to Precedence Research, the global cryptocurrency mining market is valued at $2.77 billion in 2025 and projected to reach $8.24 billion by 2034, growing at a CAGR of 12.90%.

The company aims to further expand to 300 MW of mining facilities in Paraguay in 2025, targeting an increase in hashrate to 25 EH/s by September. This positions Hive strongly in the competitive mining landscape as Bitcoin continues to see significant price growth, trading above $100,000 as of January 2025, according to Compass Mining's industry report.

Despite regulatory challenges, including a temporary ban on crypto mining that was proposed in Paraguay in April 2024 due to concerns about power grid impacts, CoinMarketCap indicates that mining remains profitable in 2025 for operations with access to low-cost energy and efficient equipment. Hive has positioned itself advantageously through its strategic location choices and focus on operational efficiency.

Balancing Opportunities and Challenges

While expansion prospects appear strong, Hive faces potential challenges in Paraguay. CNN reports growing concerns about cryptocurrency mining potentially exacerbating electricity shortages in regions with abundant renewable energy. State energy company ANDE has reported that around 28% of Paraguay's electricity is lost annually, partly due to fraudulent crypto mining operations.

However, Hive's formal agreements and compliance with local regulations position it differently from unauthorized miners. The company has committed to providing economic benefits to Paraguay, with its large-scale operations expected to generate significant revenue for the country's electricity provider while creating local employment opportunities.

Market analysts also note the volatile nature of cryptocurrency prices affects mining profitability. According to FinTech Magazine, the sector has experienced significant price volatility in previous years, though forecasts for 2025 remain positive with projections ranging from $150,000 to $190,000 per Bitcoin.

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