Hive Digital Technologies Expands Bitcoin Mining Capacity With…

Hive Digital Technologies has reached 10 Exahash in Bitcoin mining capacity with a significant expansion in Paraguay. The company aims to boost this to 18 EH/s by September, assisted by the acquisition of partially completed Bitfarms facilities. Additionally, Hive’s high-performance computing division is performing well, projecting a run rate of $50 million by year’s end. The emphasis on electricity and supporting infrastructure is key to both segments of the business, alongside the increasing importance of data sovereignty.

Hive Digital Technologies is making headlines with the expansion of its Bitcoin mining capacity in Paraguay, reaching a milestone of 10 Exahash (EH/s). Executive chairman Frank Holmes shared insights during an interview with Proactive, emphasizing how the acquisition of partially completed Bitfarms facilities in Paraguay has been a game-changer for the company. This suggests a clear push for growth ahead, with aspirations to hit 18 EH/s by August or September.

Holmes did not shy away from discussing how this rapid growth surpasses original projections. The speed of the expansion is indeed surprising; it wasn’t long ago that Hive set its sights on 15 EH/s, yet they are already aiming higher. The acquisition, he noted, has fast-tracked their development considerably, benefiting from the lower energy costs in Paraguay and a surplus of miners that were previously unprofitable in Canada.

Their high-performance computing subsidiary, Hive HPC, is also gaining traction, having reached a $20 million annual run rate. Thanks to Craig Tavares, Hive HPC’s new president, who is credited with driving this growth, things are looking promising. This has allowed other leaders within the company to focus on operations in Paraguay, potentially leading to a run rate of $50 million by year-end.

Holmes elaborated on how Hive HPC and the Bitcoin mining side of the business complement each other. Both sectors heavily rely on electricity and infrastructure, which are crucial for their operations. While Bitcoin facilities capture stranded and surplus electricity, Hive HPC’s infrastructure costs are significantly higher—tenfold in some instances. This dual-focus seems central to Hive’s strategy moving forward.

The conversation also briefly touched on the importance of logistics, noting the need for fiber optics infrastructure to support high-performance computing. Holmes pointed out that some properties are “stranded” due to infrastructure lag, particularly in the telecom sector, which hasn’t kept pace with advancements in technology like Nvidia chips.

Aiming to be ahead of the curve, Holmes underscored a growing trend in data sovereignty. Regions such as Quebec and Texas are prioritizing local data storage, expressing concerns over data kept in other areas. This sensitivity shows the rising value of protecting data, especially as AI gains traction and drives demand for expedited access and analysis.

In summary, Hive Digital Technologies is rapidly expanding its Bitcoin mining capacity, thanks to strategic acquisitions in Paraguay. The company is not just focused on Bitcoin but is also nurturing its high-performance computing division, which appears to be thriving. Their joint efforts in energy and infrastructure are paving the way for future growth, amid a growing conversation around data sovereignty that could influence trends in both industries.

Original Source: www.proactiveinvestors.com