HIVE Digital Acquires Bitfarms' Paraguay Site for $85M, Adding 200MW in Mining Power
HIVE Digital has signed a binding letter of intent to acquire fellow Bitcoin miner Bitfarms’ partially-completed 200 MW site in Yguazú, Paraguay, in a deal totaling approximately $85 million designed to further tap into the country’s abundant hydroelectric power. This strategic acquisition will significantly expand HIVE's mining capacity, leveraging Paraguay's abundant hydroelectric power, and aligns with the company's ambitious growth plans in the Bitcoin mining sector.
Powering Up: Inside the 200 MW Yguazú Site
The Yguazú site, currently under development, is expected to add 12.5 EH/s of mining capacity to HIVE's operations upon completion. The first phase, adding 6 EH/s, is 80% complete and scheduled to be finished by April. The second phase, adding another 6.5 EH/s, is slated for completion by August. HIVE estimates the total net cost to complete the site will be $400,000 per MW.
Financing the Deal: Cash, Crypto, and a Reimbursement
The deal, expected to close in Q1 2025, involves a $25 million payment at closing and $31 million in equal installments over the following six months, financed by HIVE's existing cash and digital currency balance. Bitfarms will also receive $19 million as reimbursement for power deposits and approximately $10 million for remaining capital obligations.
A Global Footprint: HIVE's Expanding Mining Operations
This acquisition will bring HIVE's operational capacity in Paraguay to 300 MW, complementing its existing 100 MW mining facility announced last July. Combined with its facilities in Canada and Sweden, HIVE aims to increase its total hashrate capacity from 6 EH/s to 25 EH/s by September, representing 3% of the global Bitcoin network. The company has already secured 15 EH/s worth of Bitmain S21+ hydro ASICs and Canaan Avalon A-series miners, with plans for further purchases.
Political Support and Sustainable Growth: HIVE's Vision for Paraguay
HIVE's leadership recently met with Paraguayan President Santiago Peña and other political leaders, gaining support for its commitment to sustainable growth in the country. "Reaching 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement," said HIVE Executive Chairman Frank Holmes.
Bitfarms' Strategic Shift: Focusing on U.S. Growth Opportunities
For Bitfarms, the sale represents a strategic shift towards reinvesting capital in U.S. growth opportunities. "Bitfarms will be reinvesting the capital from this sale towards its 1 GW growth pipeline in the U.S. for BTC and HPC/AI infrastructure," said Bitfarms CEO Ben Gagnon. The deal will also reduce Bitfarms' anticipated 2025 capital requirements and rebalance its portfolio towards a more North American focus.