HIVE Digital Expands Bitcoin Mining Operations
HIVE Digital Technologies Ltd. has announced its acquisition of Bitfarms Ltd.’s partially completed 200 MW hydro-powered Bitcoin mining facility in Paraguay.
Deal Highlights and Financing
The agreement includes $56 million in direct payments, with $25 million due at closing in Q1 2025 and the remainder in equal installments over six months. Bitfarms will also receive $19 million for power deposits and $10 million for remaining construction costs. HIVE plans to finance the acquisition using its cash and digital currency reserves.
Phased Development Plan
The Yguazú facility, currently 80% complete, will be developed in two phases:
- Phase 1: Expected by April 2025, adding 6 EH/s of capacity.
- Phase 2: Set for August 2025, adding 6.5 EH/s with hydro-cooled ASICs.
Upon completion, HIVE’s operational capacity in Paraguay will reach 300 MW, including a separate 100 MW facility scheduled for mid-2025.
HIVE’s Global Growth Strategy
HIVE aims to increase its global hashrate from 6 EH/s to 25 EH/s by September 2025, accounting for 3% of the Bitcoin network’s total capacity. The company has already secured advanced mining equipment, including Bitmain S21+ hydro ASICs and Canaan Avalon miners, with plans for further acquisitions.
Hashrate measures the computational power used to secure Bitcoin transactions. A higher hashrate reflects greater network security and confidence in Bitcoin’s future potential.
Commitment to Green Energy and Innovation
“Reaching 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement,” said Frank Holmes. Aydin Kilic, HIVE’s President and CEO, highlighted the company’s 400% operational scale increase and commitment to sustainability.
Bitfarms’ Future Plans
Bitfarms intends to reinvest the proceeds into its 1 GW growth pipeline in the U.S., focusing on high-performance computing (HPC) and AI infrastructure. This move aligns with Bitfarms’ strategic pivot to diversify its operations.