TL;DR
- HIVE boosts Bitcoin mining capacity: Acquires Bitfarms’ 200 MW hydro-powered Paraguay site for $85M, expanding its total capacity to 300 MW. Global hashrate projected to hit 25 EH/s (3% of the network) by late 2025.
- Green energy focus: Phased expansion (12.5 EH/s by 2025) supports HIVE’s sustainability goals and $500M revenue target, with Paraguayan government collaboration and community investments.
- Bitfarms pivots to North America: Sells assets to reinvest in U.S./Canada growth, targeting 80% North American operations by 2025 as it shifts to energy/compute infrastructure.
HIVE Digital Technologies announced its acquisition of Bitfarms’ 200 MW hydro-powered Bitcoin mining facility in Yguazú, Paraguay. This strategic move, valued at approximately $85 million, is set to significantly enhance HIVE’s operational capacity and position in the global Bitcoin mining industry. The acquisition aligns with HIVE’s commitment to sustainable growth and green energy utilization.
Details of the Acquisition
The acquisition deal includes a $56 million payment, with $25 million payable at closing in Q1 2025 and $31 million in equal installments over the following six months. Additionally, Bitfarms will receive $19 million as reimbursement for power deposits made to the local utility company and approximately $10 million in remaining capital obligations.
The Yguazú site, currently 80% complete, will be developed in two phases. Phase 1, scheduled for completion by April 2025, will add 6 EH/s of capacity. Phase 2, expected to be completed by August 2025, will add a further 6.5 EH/s via hydro-cooled ASICs.
Strategic Growth and Impact
Upon completion, HIVE’s operational capacity in Paraguay will total 300 MW, including its existing 100 MW mining facility in the country. This expansion will increase HIVE’s global Bitcoin mining hashrate from 6 EH/s to an anticipated 25 EH/s by September 2025, representing 3% of the global Bitcoin network. HIVE’s leadership has emphasized the importance of this acquisition in achieving its $500 million top-line annual revenue target.
Community and Environmental Commitment
HIVE’s commitment to sustainable growth is reinforced by its use of 100% green hydroelectric energy. The company’s leadership has engaged with Paraguayan President Santiago Peña and other political leaders to gain support for their initiatives. HIVE President and CEO Aydin Kilic highlighted the company’s dedication to investing in critical infrastructure, supporting education, and creating quality jobs in Paraguay.
Bitfarms’ Strategic Shift
Bitfarms, on the other hand, plans to reinvest the capital from this sale into U.S. growth opportunities. The company aims to transition from an international Bitcoin miner to a North American energy and compute infrastructure company.
Bitfarms CEO Ben Gagnon stated that the transaction would significantly reduce their anticipated 2025 capital requirements and rebalance their portfolio to approximately 80% North American and 20% international operations by the end of the year.
