Hive Digital plans to significantly expand its bitcoin mining operations in Paraguay, expecting a 400% increase in capacity. The company’s initiatives will capitalize on the region’s hydroelectric resources, with potential economic benefits for the government. Despite recent increases in energy costs affecting miners, Hive Digital remains optimistic about its operations in the country.
Hive Digital has shared ambitious plans for significant expansion in Paraguay, which is recognized for its vast hydroelectric resources. At a recent Roundtable event hosted by The Street, Executive Chairman Frank Holmes discussed the company’s strategy, noting an anticipated increase of over 400% in operational capacity. This expansion positions Paraguay as a crucial hub for Hive Digital’s activities in the region.
Holmes emphasized the company’s growth trajectory by stating, “We’re going to go up above 400%. You got to think that we’re going to be having triplets over the next nine months as we build out Paraguay, which has a huge surplus of hydroelectricity.” This development leverages Paraguay’s favorable conditions for bitcoin mining operations, particularly the financial incentives provided by the local government.
The Itaipu dam, one of the largest in the world, produces a surplus of energy that is advantageous for Hive Digital’s operations. Holmes noted that rather than selling this excess electricity at lower rates to Brazil, it can be offered to bitcoin companies in exchange for U.S. dollars at higher prices. “We’re actually a great engine for the government because they’re going to get paid U.S. dollars every month for that electricity, and we help build out the infrastructure within the community,” he said.
Hive Digital’s foray into Paraguay began in July, coinciding with the government’s introduction of increased electricity fees targeting bitcoin miners. Although this strategy aims to bolster governmental revenues, it caused some miners to contemplate exiting the nation, citing the unfeasibility of continued operations under the new pricing structure. President Santiago Pena indicated that, despite reduced profit margins, current mining operators were expected to remain within Paraguay.
Hive Digital’s expansion in Paraguay underscores the strategic benefits of operating in a country with abundant hydroelectric resources. The anticipated increase of over 400% in capacity affirms the company’s commitment to growing in Paraguay. Despite challenges posed by rising electricity prices, Hive Digital remains positioned to contribute positively to both the local economy and infrastructure development, aligning with governmental goals for sustainable energy utilization.
Original Source: news.bitcoin.com
