Hive Digital plans a 400% expansion in Paraguay, leveraging abundant hydroelectric energy. Executive Chairman Frank Holmes highlights this initiative’s benefits to both the company and the government, despite recent power fee hikes. Hive’s operational model aims to maximize revenue while fostering local infrastructure growth.
Hive Digital, a leading public bitcoin mining entity, recently unveiled significant expansion plans in Paraguay, a country noted for its substantial hydroelectric power resources. During an event at The Street’s Roundtable, Executive Chairman Frank Holmes articulated that these developments could enhance the company’s operational capacity by over 400%. Paraguay will serve as a pivotal location for Hive Digital’s expansion efforts.
Holmes elaborated on the ambitious goal, stating that their increased operations would lead to project advancements within the next nine months, leveraging Paraguay’s vast hydroelectric surplus. He emphasized the state’s advantageous conditions for growth within the bitcoin mining sector, indicating that such operations provide valuable revenue for the government.
The operational model allows Hive Digital to acquire electricity from the Itaipu dam, a major global power source, at a rate beneficial to both the company and the Paraguayan government. Holmes remarked on the positive impact of their presence, indicating, “We’re actually a great engine for the government because they’re going to get paid U.S. dollars every month for that electricity.”
Hive Digital initially entered the Paraguayan market in July, shortly after the government began raising fees on energy consumption by bitcoin miners. Despite concerns from some companies regarding the price hikes making operations less viable, President Santiago Pena maintained that these measures would not deter mining activities in the country despite reduced profit margins.
In summary, Hive Digital is poised for a substantial expansion of over 400% in Paraguay, capitalizing on the country’s plentiful hydroelectric resources. This strategic move aligns with the government’s objectives of fostering economic growth through bitcoin mining activities. Even with increased operational costs due to government initiatives, Hive Digital’s commitment underscores the potential benefits such as revenue generation for local infrastructure and community development.
Original Source: news.bitcoin.com
