Source : financemagnates, Mon, 29/07/2024 | 12:34 GMT+3
HIVE Digital Technologies Ltd., Wall Street’s Bitcoin mining company (NASDAQ: HIVE), has announced plans to build a 100 MW Bitcoin mining operation in Paraguay, with the aim of doubling its revenue and significantly enhancing its hash rate capacity.
Wall Street Bitcoin mining company plans to build a 100 MW Bitcoin mine in Paraguay, targeting revenue
The Vancouver-based company, which specializes in green-focused data centers, plans to operate the facility using clean energy from the Itaipu Hydroelectric Dam. This expansion is expected to increase HIVE’s global bitcoin mining capacity from 5.6 to 12.1 exahaches per second (EH/s) over the next year.
Frank Holmes, CEO of HIVE, commented: “This marks an important milestone in our diversified growth strategy.” “We are confident that this project can deliver healthy returns, drive long-term value, and promote economic growth and innovation in the region.”
The announcement follows meetings between HIVE executives and Paraguayan President Santiago Peña, during which the company endorsed the business environment in Paraguay. HIVE stressed that government stability in areas such as energy pricing and taxes will be critical to future expansion considerations.
Last week, Marathon Digital, another Bitcoin mining company from Wall Street, also made headlines when it ordered a $138 million payment to the founder of a rival mining company. Michael is alleged to have been from Hut 8 who developed a growth strategy for Marathon but did not receive proper compensation.
The proposed data center is expected to generate more than US$100 million in revenue for the utility company in Paraguay over the next three years. HIVE plans to leverage its expertise in balancing the network and responding to demand to support the country’s industrial development.
Last year, the company rebranded from HVE Blockchain to Digital to reflect the evolving nature of its business. In addition to focusing on cryptocurrency mining, the company has expanded into high-performance computing (HPC) data centers and the growing trend of mass adoption of artificial intelligence (AI).).
HIVE buys 500 mining devices
Luke Rossi, chief operating officer of HIVE, also revealed the acquisition of 500 Bitmain S21 Pro Antminers, the latest in mining technology. “These units are expected to ship this month and are an integral part of the company’s strategy of continuously upgrading its fleet while growing its HODL position,” Rossi explained.
As of July 21, 2024, HIVE reported that it owns 2,521 bitcoins, up from 2,496 at the end of June. At Bitcoin’s current market capitalization, this represents more than $170 million of digital assets on the company’s balance sheet.
According to the latest financial report from the publicly traded mining company, the company generated annual revenue of $114.5 million and adjusted net earnings before interest, tax, depreciation and amortization of $37.5 million in fiscal 2024. Over the twelve months ending March 31, 2024, the company mined 3,123 BTC and held 2,287 BTCs, worth $161.3 million on year-end balance sheet.
The draft Paraguay remains subject to final agreements, due diligence, board approval and regulatory approvals. HIVE stated that more details will be provided in the near future.
