Bitcoin mining company Hive Digital Technologies is putting forward a long-term play in Paraguay, betting on the country’s low-cost hydropower and stable business environment to fuel its growth.
The company, which already operates in Canada and Sweden, recently acquired a 200-megawatt (MW) mining facility in Paraguay from rival Bitfarms for $56 million.
The first phase, a 100 MW data center, is already up and running, contributing 5 exahashes per second (EH/s) to Hive’s mining power. By next year, Hive plans to expand its Paraguay operations to 300 MW, aiming to hit 25 EH/s by September 2025.
Paraguay is home to some of the most affordable electricity in the globe, thanks to its vast hydroelectric resources. Hive’s CEO, Aydin Kilic, calls it a “compelling long-term opportunity” due to the country’s political stability, renewable energy surplus, and government support for foreign investors.
But it hasn’t been all smooth sailing. Some Paraguayan lawmakers have put forth measures that could restrict crypto mining, fearing it could strain the national power grid and raise electricity costs. Hive says it’s working closely with local officials to ensure regulations remain fair and predictable for miners.
A Global Hedge Against Risk
While in the process of expanding in Latin America Hive is also shifting its headquarters to Texas, strengthening its presence in North America.
Kilic says this dual-continent strategy helps protect the company from geopolitical shocks or sudden policy changes, like the U.S. imposing tariffs on Chinese-made mining equipment.
To keep growth on track, Hive has locked in ASIC miner orders, secured long-term power deals, and built engineering teams across three continents. Kilic compares Bitcoin mining to a “physics equation” Success depends on managing costs, maximizing uptime, and using energy efficiently.
While smaller miners are having a hard time in today’s competitive market, Hive’s strategy focuses on scaling smartly and keeping expenses low.
With its Paraguay expansion, Hive is betting that cheap, clean energy and global diversification will keep it ahead in the volatile field of Bitcoin mining.
