Hive Digital Technologies, a prominent Bitcoin mining company, is setting its sights on Paraguay as a strategic hub for low-cost energy, defying global geopolitical uncertainties that have nudged many crypto firms back to U.S. soil. In a dialogue with Cointelegraph, Aydin Kilic, Hive’s CEO, underscored Paraguay’s geopolitical calm, affordable hydroelectric power, and investor-friendly climate as key draws for the company’s ambitious expansion plans.
Tapping the LATAM Potential
Hive’s foray into Paraguay was catalyzed by the acquisition of Bitfarms’ Yguazú facility—a 200-megawatt (MW) powerhouse—for $56 million earlier this year. The initial phase of infrastructure development, a 100 MW data center, was completed in April, boasting a hefty five exahashes per second (EH/s) mining capacity. But that’s just the beginning. Hive plans to scale up to 300 MW in 2025, aiming for a formidable 25 EH/s hashrate by September.
Kilic elaborated on Hive’s commitment to fostering a symbiotic relationship with Paraguay’s local ecosystem. “We’re deeply invested in local hiring, training programs, and robust vendor partnerships to stabilize costs and enhance operational uptime,” he said. This local focus is pivotal, especially as the country grapples with regulatory discussions on cryptocurrency mining, driven by concerns about electricity consumption and potential price hikes. Hive, however, is actively working with policymakers to navigate these legislative waters, echoing broader themes in the U.S. Congress’s intense debate over crypto legislation.
Diversification: A Strategic Shield
Hive’s operations span Canada, Sweden, and now Paraguay, but the company is also planting roots in San Antonio, Texas. This geographical diversification, Kilic points out, is a strategic hedge against geopolitical turbulence and trade policy shifts. Notably, the U.S. tariffs on China have stirred apprehension about escalating costs for mining equipment like ASICs. To counter this, Hive has diversified its sourcing channels, ensuring resilience against any single-region dependency.
The company’s scaling ambitions—to catapult from six to 25 EH/s—are supported by strategic ASIC orders, long-term power purchase agreements, and a bolstered engineering team spread across three continents. These moves are designed to navigate market volatility and technological advancements smoothly. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance on staking.
Mining Profitability: A Delicate Balance
For Kilic, the profitability of Bitcoin mining boils down to physics—a delicate balance of inputs and outputs. “Whether you’re operating one rig or ten thousand, it’s about mastering inputs like operational expenses, power costs, and machine uptime to achieve predictable outputs,” he explained. This approach emphasizes maximizing energy efficiency, minimizing downtime, and exercising financial discipline.
Hive’s strategy reflects a broader industry sentiment as the global mining community wrestles with market dynamics and technological uncertainties. The company’s focus on local integration and global diversification presents a nuanced response to these challenges, raising questions about whether other mining operations might soon follow suit.
As Hive Digital Technologies continues to expand its footprint in Latin America, the implications for the broader crypto market are significant. Will Paraguay emerge as a new epicenter for Bitcoin mining in the face of regulatory debates? And how will Hive’s strategic maneuvers influence the competitive landscape? Only time will tell.
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This article is based on: Bitcoin miner Hive taps Paraguay for low-cost energy partnership
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
