In a significant move to enhance its operational capacity, Hive Digital Technologies (HIVE) has agreed to purchase a bitcoin mining site in Yguazú, Paraguay, from fellow miner Bitfarms (BITF) for a total of $85 million, which includes assumed obligations. This strategic acquisition not only solidifies Hive’s position in the industry but also paves the way for substantial growth in its mining capabilities.
The acquisition will more than triple Hive’s hashrate to an impressive 25 exahash per second (Eh/s) by September, according to an announcement made by the company on Tuesday. The site, characterized by its potential for enhanced mining performance, is expected to significantly contribute to Hive’s expansion goals in the competitive cryptocurrency market.
The financial details of the acquisition delineate a total outlay of $56 million for the site itself. In addition, Hive will reimburse $19 million in deposits associated with power-purchase commitments and allocate another $10 million towards remaining capital obligations, as indicated in a separate statement from Bitfarms. This strategic investment is aligned with Hive’s goal of enhancing operational efficiency and optimizing resource allocation.
Additionally, Hive has assessed the development of the site, particularly its transformation into a 200 MW facility, at approximately $400,000 per MW. This careful financial planning reflects Hive’s commitment to sustainable growth through strategic infrastructure investments.
In terms of market impact, HIVE shares experienced a decline of over 10% to $2.78 on Monday amidst a broader market sell-off related to DeepSeek. However, pre-market trading has shown a recovery, with shares trading 4.68% higher at $2.91. Bitfarms also noted a positive movement, with shares increasing by 4.29% to reach $1.46, indicating a potential rebound in investor confidence.
This acquisition marks a critical step for Hive Digital Technologies as it navigates the evolving landscape of bitcoin mining, positioning itself for future growth and resilience. The implications of this move will likely resonate throughout the industry, setting new benchmarks for operational capacity and efficiency in cryptocurrency mining.
For further insights, read more on the evolving dynamics within the bitcoin mining sector: Bitcoin Mining Stocks With AI Ambition Battered 20%-30% Lower as Nvidia’s Plunge Grips Crypto.
