HIVE Digital Technologies (NASDAQ: HIVE) has completed a deal to purchase Bitfarms Ltd.’s 200-megawatt Yguazú hydroelectric power plant in Paraguay. The move will increase the company’s mining capacity by 317%, from 6 exahashes per second (EH/s) to an expected 25 EH/s by September 2025.
One of Wall Street's leading Bitcoin (BTC) miners continues to expand despite this year's BTC price correction. The cryptocurrency has fallen 25% from its all-time highs in January and is currently experiencing its lowest levels in four months.
HIVE Digital Technologies Plans to Quadruple Its Mining Capacity by 2025
The $56 million deal strengthens HIVE’s position in sustainable blockchain infrastructure, expanding its global footprint to 430 MW in Paraguay, Canada, and Sweden by Q3 2025. With the acquisition, HIVE will control 300 MW of mining infrastructure in Paraguay alone, including an already announced 100 MW project in Valenzuela scheduled to launch in June.
Frank Holmes, Executive Chairman of HIVE
“This acquisition underlines our strategic commitment to sustainable and rapid expansion,” said Frank Holmes, executive chairman of HIVE. “Increasing our operations to 3% of the global network by September 2025, powered entirely by green energy, is a significant achievement.”
The Yguazú project will be developed in two phases; the first phase is expected to be completed by April 1, adding about 6 EH/s of hashrate. Construction work is already 80% complete. The second phase, scheduled to be completed by August 31, will add an additional 6.5 EH/s using hydro-cooled ASICs to improve efficiency.
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Why is the price of Bitcoin falling?
Despite the tough times, HIVE continues to focus on expansion despite falling Bitcoin prices and increasing mining difficulty, which have significantly reduced profits.
As of March 18, 2025, Bitcoin is trading at $82,500 per BTC, down 25% from two months ago. On Tuesday, the price fell 1.8%, settling near the psychological support level of $80,000 and marking a four-month low.
BTC fell 18% in February, which negatively affected HIVE's production. Last month, the miner mined 89 BTC, down from 102 BTC the previous month. According to the company, it is currently reallocating its resources to projects aimed at increasing its hashrate.
Bitmain S21+ Hydro ASIC
Aydin Kilych, President and CEO of HIVE
HIVE has secured ASICs for 15 EH/s of operational hashrate, including its existing 6.5 EH/s installed capacity and the 8.6 EH/s Bitmain S21+ Hydro ASICs ordered last November. The company plans to announce additional ASIC acquisitions in the coming months to reach its 25 EH/s target, with the goal of achieving a fleet-wide efficiency of 16.5 joules per terahash.
“Our priority is to create shareholder value while promoting sustainable local growth,” said Aydin Kılıç, HIVE president and CEO. “This acquisition allows us to quadruple our capacity while maintaining one of the most energy-efficient operations in the industry.”
The deal includes ownership of a 240 MVA, 200 MW substation, and associated land and facilities. HIVE paid $25 million at closing, with the remaining $31 million to be paid in equal installments over six months. The company estimates the total net cost to complete the 200 MW facility to be $400,000 per MW.
HIVE is pleased to announce the completion of the acquisition of the 200 MW Bitfarms hydroelectric power plant in Paraguay.
This strategic expansion marks a 317% increase in mining power, increasing HIVE from 6 EH/s today to a projected 25 EH/s by September 2025. pic.twitter.com/udGdIAVndu
— HIVE Digital Technologies (@HIVEDigitalTech) March 18, 2025
New President of the Country in Paraguay
The expansion coincides with the appointment of Gabriel Lamas as President of Paraguay, which was announced yesterday. Lamas, an electrical engineer with more than 20 years of experience in infrastructure and energy projects, previously served as Director of Infrastructure and Operations for Latin America at Bitfarms Ltd. and worked for Paraguay’s National Utility Company ANDE.
“As we become the largest private user of ANDE electricity, HIVE will play a key role in providing a stable stream of revenue dollars for the government,” Holmes said of Lamas’ appointment.
Last month, the Wall Street Bitcoin miner also named Craig Tavares as president and chief operating officer of its Buzz HPC division, which specializes in GPU Cloud and high-performance computing (HPC) services.
Source: cryptonews.net
