Hive Digital Doubles Down on Bitcoin Mining Expansion in Paraguay

“Frank Holmes, chairman of Hive Digital, said the company hopes to increase its capacity by more than 400% through its projects in Paraguay, which has ample hydroelectric power to meet its business needs.

Hive Digital Announces 400% Expansion in Paraguay

Hive Digital, one of the world’s leading public Bitcoin miners, has revealed ambitious plans for its operations in Paraguay. In a roundtable with The Street, Hive Digital executive chairman Frank Holmes discussed the company’s upcoming moves in the South American country, which is renowned for its abundant hydropower resources.

Holmes said the operation will significantly scale up its operations, using Paraguay as one of its key bases to achieve a 400% increase in Hive Digital's operational capabilities.

He noted:

We will exceed 400%. You have to consider that we will have triple capacity in the next nine months while we develop Paraguay, which has a huge surplus of hydroelectricity.

Additionally, Holmes added that Paraguay provides the necessary conditions for the company to grow, as the government benefits significantly from the establishment of Bitcoin mining companies in its country. Excess energy from the Itaipu Dam, one of the largest in the world, which would otherwise be sold to Brazil at lower rates, is sold to Bitcoin companies, who pay a higher price in dollars.

“We're actually a great incentive for the government because they're going to get paid monthly in U.S. dollars for that electricity, and we're helping develop the infrastructure in the community,” Holmes said.

Hive Digital announced its entry into Paraguay in July, amid measures to raise electricity rates for Bitcoin miners as the government sought to capture a larger share of the activity on Paraguayan soil. This has led some companies to consider leaving the country, stressing that rising prices will make it impossible to do business in the country.

Read more: Hive announces plans to enter Paraguay amid unrest over Bitcoin mining capacity expansion

At the time, President Santiago Peña said that while the decision would reduce profit margins, it would not prevent mining companies from continuing their operations in Paraguay.

Read more: Paraguay's president denies Bitcoin mining firms' electricity rate hike complaints, says high rates will persist

Source: cryptonews.net