HIVE Digital Expands Operations With $85M Deal in Paraguay

Bitcoin mining firms are doubling down on their strategies with new acquisitions as marked by the HIVE Digital deal in Paraguay.

Hive Digital Technologies (HIVE) is taking big steps to grow in the Bitcoin mining industry.  In a strategic move, the company has bought a mining site in Yguazú, Paraguay, from Bitfarms (BITF). 

This $85 million deal promises to boost Hive’s mining capacity, more than tripling its current power. This move could set the company up for substantial growth in the crypto sector.

A Major Boost for Hive Digital Mining Operations

The acquisition, which involves both direct payments and taking on responsibilities, is a big step forward for Hive’s growth plans. As announced, the firm will pay $56 million for the site and reimburse Bitfarms an additional $19 million for power-purchase commitments. 

Hive will also cover $10 million for other remaining capital obligations. The Bitcoin miner expects its hashrate to reach 25 exahash per second (Eh/s) by September. This expectation is pushing the company to ramp up operations significantly over the coming months.

Hive has ambitious plans to transform the site into a 200 MW powerhouse. The company estimates that developing the site will cost about $400,000 per MW. This big but smart investment will help the company grow its presence in the Latin American market.

Bitfarms is selling its largest mining site in Paraguay to simplify its operations. This move is part of strengthening its position in the North American market. This decision aligns with the company’s goal to diversify into high-performance computing (HPC) and artificial intelligence (AI) infrastructure. 

The capital from this sale will be reinvested into its 1 GW growth pipeline in the U.S. By the end of 2025, Bitfarms aims to rebalance its portfolio to 80% North American and 20% international operations. 

While many mining companies are expanding globally to overcome industry challenges, MARA Holdings stayed ahead in 2024 by using new technology and smart financial strategies to maintain its leadership in Bitcoin mining.

Market Reaction and Share Movement

Despite recent market turbulence, Hive’s stock slightly recovered following the announcement. After a dip of over 10% earlier in the week, shares rebounded by 4.68% in pre-market trading, reaching $2.91. 

Meanwhile, Bitfarms saw a similar uptick, with its shares rising 4.29% to $1.46. Hive’s bold acquisition shows its dedication to expanding its mining infrastructure. As the Bitcoin mining industry keeps evolving, this move could give Hive an edge. 

It positions the company for a stronger future in a highly competitive market.

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