Hive Announces Plans to Move Into Paraguay Amidst Bitcoin Mining Power Hike Turmoil

Hive Digital, a public green bitcoin mining company, announced plans to build a 100MW site in Paraguay, having connected with President Santiago Peña and his cabinet. 

Hive stated that stability in government fiscal policies, such as energy pricing and taxation, will be a key factor in the expansion and completion of these plans, likely referring to the recent power fee hike that has affected companies in the bitcoin mining industry.

Hive Announces Plans for Building 100MW Bitcoin Mining Site in Paraguay

Paraguay keeps attracting Bitcoin mining companies. Hive Digital, a Canada-based, Nasdaq-listed bitcoin mining company with operations in Canada, Sweden, and Iceland, has announced plans to establish a bitcoin mining site in Paraguay. 

The company aims to secure 100MW of clean energy produced in the Itaipu hydroelectric dam, having already connected with Paraguay’s president Santiago Peña and his senior cabinet.

In a press statement, Hive Executive Chairman Frank Holmes stated that the company expected to add 6.5 Exahash per second to its total mining power, increasing it to 12.1 EH/s. Holmes considers this development a milestone in Hive’s policy of expansion and decentralization of its operations.

Hive stressed that “stability in government fiscal policies, such as energy pricing and taxation, will be a key factor in our future expansion considerations relating to continued growth in Paraguay.” 

Bitcoin mining companies in Paraguay are being hit by a 14% power fee increase enacted by the National Power Administration (ANDE), affecting the economic feasibility of their operations in the country. 

However, Peña disregarded the miners’ claims, stating this would only affect their operative margins.

Hive highlighted that this new site will allow the Paraguayan government to perceive $100 million during the next three years. 

While the agreement between Hive and the Paraguayan government is in an advanced state, it is still incomplete. 

Hive General Legal Counsel Gabriel Ibghy stressed that while they had made “significant progress in identifying the data center site and securing construction and power supply contracts,” the transaction was still subject to final approvals and due diligence.

Penguin Group, which has bitcoin mining operations in the country, started migrating to Brazil, having recently secured 400MW due to the mentioned power hikes.

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