In the ever-evolving landscape of cryptocurrency, many organizations are reassessing their strategies amid geopolitical uncertainties. HIVE Digital Technologies, a prominent player in Bitcoin mining, is making bold moves by establishing a strong foothold in Latin America, with a focus on Paraguay’s potential for growth.
In an exclusive interview with Cointelegraph, Aydin Kilic, HIVE’s president and CEO, highlighted Paraguay’s attractiveness as a mining destination. He stated, “This country offers geopolitical stability, low-cost hydro energy, and a government that is open to foreign investment.” These factors create an ideal environment for the company’s expansion plans.
Picking up from Where Bitfarms Left Off
Earlier this year, HIVE expanded its operations by acquiring Bitfarms’ 200 MW Yguazú facility for $56 million. Phase 1 of the project, which includes a 100 MW data center, was completed in April and is already contributing 5 EH/s of Application-Specific Integrated Circuit (ASIC) mining power.
Looking ahead, HIVE aims to increase its facilities in Paraguay to 300 MW by 2025 and target a hashrate of 25 EH/s by September. This ambitious plan underscores HIVE’s commitment to becoming a leader in the region’s burgeoning crypto mining sector.
The company has invested significantly in building solid relationships with local stakeholders, focusing on local hiring, training initiatives, and establishing robust vendor partnerships. Kilic emphasizes the importance of developing a supportive local ecosystem that enhances operational efficiency and keeps costs stable.
Although a proposed ban on cryptocurrency mining in Paraguay has raised concerns due to pressure on the country’s electricity infrastructure, Kilic remains optimistic. HIVE’s team actively collaborates with policymakers to promote clarity and cooperation in mining legislation.
Global Diversification: A Hedge Against Geopolitical Risks
Beyond its ventures in Latin America, HIVE maintains data centers in Canada and Sweden, contrasting its ongoing LATAM expansion with a strategic relocation of its headquarters to San Antonio, Texas. This dual presence across North and South America fortifies HIVE’s operational resilience against geopolitical or trade policy shocks.
As concerns about rising costs for mining equipment grow, particularly due to U.S. tariffs on Chinese imports, HIVE has diversified its sourcing strategy for ASICs and electrical components to mitigate over-dependence on any single region.
To support its ambitious growth from 6 to 25 EH/s, HIVE has strategically locked in key ASIC orders and secured long-term power purchase agreements (PPAs) while enhancing its engineering capacity across continents to navigate market fluctuations and technological challenges.
Understanding Profitability in Bitcoin Mining
Kilic views Bitcoin mining profitability through a scientific lens, emphasizing that capital and operational expenses rely heavily on hashrate-sensitive analysis. This perspective enables HIVE to identify the most effective financing strategies through Bitcoin treasury and ATM sales.
For miners, whether operating a single rig or a vast array, Kilic advises focusing on controllable variables—such as operational expenses, power costs, and machine uptime—to achieve stable and predictable outputs. By maximizing energy efficiency and minimizing downtime, HIVE aims to enhance its financial performance while maintaining disciplined treasury management.
In this dynamic and challenging environment, HIVE Digital Technologies stands at the forefront of Bitcoin mining innovation, leveraging untapped markets and forming strategic partnerships to ensure sustainable growth and profitability.
