HIVE Digital Technologies Ltd. (CVE: HIVE) (NASDAQ: HIVE) (FSE: YO0) has signed a binding letter of intent (LOI) with Bitfarms Ltd (NASDAQ: BITF) (TSE: BITF) to buy its Yguazú 200 megawatt hydro-powered Bitcoin mining facility in Paraguay.
The Tuesday announcement came with the assurances that the acquisition would increase the company’s hashrate from 6 Exahash per second (EH/s) to an anticipated 25 EH/s by September. It would bump the company into the upper echelons of bitcoin miners.
HIVE will enhance its operational capacity in Paraguay to 300 MW with this acquisition. Subsequently, this will help increase its global capacity to 430 MW, including existing facilities in Canada and Sweden, by Q3 2025. This milestone demonstrates HIVE’s commitment to operating entirely on 100 per cent green hydroelectric energy and solidifies its position as one of Latin America’s largest Bitcoin mining operators.
HIVE will develop the 200 MW Yguazú site in two phases.
Phase 1 is scheduled for completion by April 1, 2025. Construction is already 80 per cent complete, and essential infrastructure is nearing readiness. This phase will also add approximately 6 EH/s of capacity, which HIVE expects to have fully operational by calendar Q2 2025.
The company will handle the remaining payments for this phase, including those required to achieve full energization. Phase 2, expected to finish by August 31, 2025, will add 6.5 EH/s of capacity using hydro-cooled ASICs.
“Reaching 3 per cent of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement,” said Frank Holmes, executive chairman of Hive.
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Hive has already secured 15 EH/s worth of ASICs
HIVE estimates the total net cost to complete the site to 200 MW at $400,000 per MW upon completion. Additionally, HIVE’s previously announced 100 MW project in Paraguay remains on track for energization by June 2025. This project will deliver 6.5 EH/s of hashrate from Bitmain S21+ hydro-cooled ASICs. This jump in hashrate will bring HIVE to its interim target of 13 EH/s.
To achieve its ambitious 25 EH/s target, HIVE has already secured ASICs for 15 EH/s from its order of Bitmain S21+ Hydro ASICs and Canaan Avalon A-series miners.
HIVE plans to make additional ASIC purchases in the coming months to reach 25 EH/s. Once HIVE hits the 25 EH/s milestone, it targets a global fleet efficiency of 16.5 joules per Terahash. Additionally, these investments aim for rapid returns, improving energy efficiency and lowering the cost of Bitcoin production.
HIVE will acquire the 240 MVA substation along with all associated land and facilities, for USD$56 million. The substation has a 200 MW capacity. The key terms of the acquisition include a USD$25 million payment due at closing, scheduled for calendar Q1 2025. Afterwards, the remainder will be paid in equal instalments over six months following closing.
“Our strategy is rooted in delivering consistent value to shareholders while fostering sustainable local development,” said Aydin Kilic, president and CEO.
“This acquisition allows us to scale operations by an incredible 400 per cent, growing from 6 EH/s to 25 EH/s.”
Additionally, HIVE will assume USD$19 million of PPA deposits to ANDE, the utility company, and take on the remaining construction completion costs after signing the binding LOI. HIVE will finance the transaction using its existing cash and digital currency balance sheet.
