HIVE gains on plan to acquire 200 MW hydro-powered Bitcoin mining facility in Paraguay from Bitfarms

Investing.com -- HIVE Digital Technologies Ltd., a global leader in sustainable data center infrastructure, is set to acquire the Yguazú 200 megawatt (MW) hydro-powered Bitcoin mining facility in Paraguay from Bitfarms Ltd. This acquisition will boost HIVE's global Bitcoin mining hashrate from 6 Exahash per second (EH/s) to an anticipated 25 EH/s by September 2025.

Shares of HIVE rose 3.2% in pre-open trading following the news.

Upon the completion of this acquisition, HIVE's operational capacity in Paraguay will amount to 300 MW, and its global capacity, including facilities in Canada and Sweden, will reach 430 MW by the third quarter of 2025. This is a significant step in HIVE's commitment to operate entirely on 100% green hydroelectric energy and reinforces its position as one of Latin America's largest Bitcoin mining operators.

The Yguazú site will be developed in two phases. The first phase, which is already 80% complete, is scheduled for completion by April 1, 2025, and will add approximately 6 EH/s of capacity. The second phase, expected to be completed by August 31, 2025, will add 6.5 EH/s. HIVE estimates the total net costs to complete the site to 200 MW to be $400,000 per MW upon completion.

In addition, HIVE's separate 100 MW project in Paraguay remains on track for energization by June 2025, which will provide 6.5 EH/s of hashrate from Bitmain S21+ hydro-cooled ASICs, bringing HIVE's interim target to 13 EH/s.

To reach its 25 EH/s target, HIVE has already secured ASICs for 15 EH/s from its order of Bitmain S21+ Hydro ASICs (December 2, 2024 press release) and Canaan Avalon A-series miners (November 10 and 20, 2024 press releases). HIVE plans to make additional ASIC purchases in the coming months to reach 25 EH/s. These investments aim for rapid returns and improved energy efficiency, thus lowering the cost of Bitcoin production.

Frank Holmes, Executive Chairman of HIVE, stated that this acquisition showcases their focus on sustainable growth and innovation. He also highlighted Paraguay's political stability and alignment with U.S. economic growth priorities. Aydin Kilic, President and CEO of HIVE, emphasized that this acquisition allows them to scale operations by 400%, growing from 6 EH/s to 25 EH/s, while also investing in critical infrastructure, supporting education, and creating quality jobs in Paraguay.

The acquisition, valued at $56 million, includes ownership of a 240 MVA substation with 200 MW of capacity, as well as all associated land and facilities. $25 million will be payable at closing, scheduled for the first quarter of 2025, and $31 million will be payable in equal installments over six months following closing. Additionally, HIVE will assume $19 million of PPA deposits to ANDE, the utility company, and remaining construction completion costs after signing the binding LOI. The transaction will be financed by HIVE's existing cash and digital currency balance sheet.

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