Hive Digital Expands Bitcoin Mining Operations in Paraguay by 400%

Hive Digital intends to increase its operational capacity by over 400% in Paraguay, leveraging the country’s hydroelectric resources. Frank Holmes emphasized mutual benefits for the company and the Paraguayan government, while addressing concerns from miners regarding recent power fee hikes.

Hive Digital, a renowned global player in bitcoin mining, plans to significantly expand its operations in Paraguay. Frank Holmes, Executive Chairman of Hive Digital, declared at The Street’s Roundtable that the company aims to enhance its operational capacity by more than 400%. This plan leverages Paraguay’s abundant hydroelectric resources, making the country a pivotal base for the company’s growth.

Holmes emphasized the strategic importance of Paraguay, expressing that the forthcoming developments could see capacity growth exceeding 400% within nine months. “We’re going to go up above 400%… Paraguay has a huge surplus of hydroelectricity,” he noted. The surplus energy available is sourced from the Itaipu dam, a major hydroelectric facility, which fuels the bitcoin mining initiative while contributing to local infrastructure.

Additionally, Holmes indicated that this expansion offers mutual benefits for both Hive Digital and the Paraguayan government. By paying in U.S. dollars for electricity, the mining company provides significant revenue to the government, which can aid in community development. “We’re actually a great engine for the government because they’re going to get paid U.S. dollars every month for that electricity,” Holmes remarked.

In July, Hive Digital announced its intention to establish operations in Paraguay, although the government had recently enacted power fee increases for bitcoin miners. Despite concerns from some companies about the viability of continued operations due to these hikes, President Santiago Pena reassured that such changes would not deter mining operators from maintaining a presence in Paraguay, as they drive substantial monetary gains.

In summary, Hive Digital’s aggressive expansion plans in Paraguay highlight the company’s strategic utilization of the country’s hydroelectric resources, aiming for a remarkable 400% increase in operational capacity. The collaboration with the Paraguayan government is poised to yield benefits for both parties, notwithstanding the recent power fee adjustments that have raised concerns among existing miners.

Original Source: news.bitcoin.com