- Hive Digital Technologies has announced plans for a 100MW Bitcoin mining facility in Paraguay using clean energy from the Itaipu hydroelectric dam
- The initiative has been projected to significantly boost Hive’s revenue and increase its hashrate to over 12 EH/s within the next year
- Paraguay’s government has supported the project, seeing it as a lucrative revenue stream and an opportunity for economic growth
Hive Digital Technologies has unveiled ambitious plans to establish a 100MW Bitcoin mining facility in Paraguay, harnessing clean energy from the Itaipu hydroelectric dam. This initiative is expected to significantly boost the company’s revenue and increase its hashrate to over 12 exahash per second (EH/s) within the coming year. Paraguay’s government has backed the move, which adds a potentially lucrative revenue stream, as mining companies look further afield for ripe opportunities.
Itaipu Hydroelectric Dam Selected
Hive was founded in 2017 and is headquartered in Vancouver, Canada, although it operates state-of-the-art data centers in Sweden, Iceland and many other countries. The company’s mission is to leverage renewable energy sources such as hydroelectric and geothermal power as part of its mission to minimize its environmental impact while maintaining cost-effective operations.
The company identified Paraguay’s Itaipu hydroelectric dam as a prime location for expansion, meeting with Paraguayan President Santiago Peña and key cabinet ministers to discuss the project. Frank Holmes, Hive’s Executive Chairman, highlighted the project’s strategic fit with the company’s expansion and sustainability goals to Water Power Magazine:
This is a pivotal step in our diversified growth strategy, enhancing our global footprint with data centers in Canada, Sweden, Iceland, and now Paraguay. We believe this venture will yield robust returns and drive sustained value, fostering economic growth and innovation in the region.
Holmes and his team are now in the process of finalizing site selection and securing necessary construction and power supply contracts. The project’s advancement remains contingent upon final agreements, due diligence, board approval, and regulatory clearances, while the project’s progress will hinge on the stability of energy pricing and taxation policies in Paraguay.
Lawmakers Trying to Ban Bitcoin Mining
Aimed at fostering local employment and regional economic development, HIVE plans to pay its energy bills in US dollars, providing a steady income stream and serving as a currency hedge for the Paraguayan government. However, the move will prove to be controversial, given that lawmakers are trying to outlaw Bitcoin mining in the country.
The upcoming data center, powered by renewable hydropower, is set to contribute an additional 6.5 EH/s to HIVE’s Bitcoin mining capacity, elevating its global hashrate to a substantial 12.1 EH/s. This development not only marks a significant milestone for HIVE but also positions Paraguay as a key player in the global cryptocurrency mining sector.
