Since Q1 2022, HIVE Digital Technologies has significantly expanded its Bitcoin mining capacity. Interestingly, within the past six months, they’ve doubled their hashrate to a staggering 12 EH/s. The company is planning to grow strategically, particularly looking to establish a strong presence in Paraguay. This change would immediately increase State revenue, targeting $400 million per year, while improving mining margins. With its sustainable hydro power and community development priorities, HIVE highlights how Bitcoin miners are committed to improving efficiency and responsible Bitcoin mining practices.

HIVE Digital is making significant strides in the Bitcoin mining sector, driven by its rapid expansion and focus on operational efficiency. The company’s doubled its Bitcoin mining hashrate to 12 EH/s in half a year. This remarkable trajectory is a testament to its potential for rapidly scaling operations. This expansion can be mostly explained by the continued expansion of its production in Paraguay, where they’re able to take advantage of abundant, sustainable hydro power.

The company's Phase 2 expansion at the Yguazú site is well underway, with 1 EH/s of next-generation Bitmain S21+ Hydro ASIC miners already contributing to HIVE's fleet. HIVE expects full deployment to get to 6.5 EH/s by the end of August. This expansion is poised to greatly enhance the company’s mining capacity and aggregate revenue generating potential.

"HIVE has doubled in its EH/s in just six months, a testament to our team's relentless execution and our strategic vision." - Frank Holmes, Co-Founder and Executive Chairman.

HIVE’s current performance metrics are outstanding, showcasing the results of its optimized operation. The company’s annualized revenue run rate is currently $250 million, with mining margins of about 55% post-electrical cost. Such strong financial performance only serves to highlight the underlying HIVE mining operations’ profitability and its aggressively managed cost base.

"As of yesterday, we achieved a $250 million annual run rate* revenue, as we are now mining over 6 BTC daily across our global Bitcoin operations, and growing, at a mining margin* of approximately 55%. Once we hit 18 EH/s, we expect approximately $400 million in annual run rate revenue, with 18.5 J/TH global average fleet efficiency and expanding mining margins* approaching 60% after electrical costs at current hashprice." - Aydin Kilic, President & CEO.

A key determinant of HIVE’s success is the mining efficiency of HIVE’s fleet of miners. The company is already running a 20 J/TH fleet efficiency at scale in Phase 2. HIVE is planning to increase its capacity to 18 EH/s. This increase would bring in nearly $400 million in new annual revenues, driven by a global average fleet efficiency of 18.5 J/TH and skyrocketing mining margins approaching 60% post-electricity costs.

"Phase 2 is already online and hashing efficiently with 20 J/TH fleet performance." - Aydin Kilic, President & CEO.

HIVE’s strategic deployment of its Bitcoin mining operations in Paraguay is being instrumental in developing the Central American country into a major center for sustainable Bitcoin mining. Paraguay has the world’s most inexpensive, plentiful sustainable hydro power which would give HIVE a huge advantage. This resource allows HIVE to power its decentralization maxi mission control mining facilities with the lowest environmental cost possible. This is good news, in line with an increase in demand for more environmentally friendly Bitcoin mining.

Today, HIVE continues to deepen its impact in Paraguay and beyond. Through its operations, the company does more than run mines—all while fostering the addition of local jobs and necessary infrastructure. As the energy needs of the connected communities have increased, the project has provided hundreds of local jobs and expanded community infrastructure. These improvements include public lighting and school air conditioning in Valenzuela, demonstrating HIVE's dedication to being a responsible corporate citizen.

"The velocity of HIVE's buildout in Paraguay is breathtaking." - Luke Rossy, Chief Operating Officer.

The fast-moving tempo of HIVE’s buildout in Paraguay is reflective of the commitment and urgency of purpose with which the HIVE team operates. The company is creating high-performance campuses at hyper speed, rapidly developing a growing operation center of gravity in the region. This hyper ramp up is nothing short of critical to HIVE being able to hit its aspirational and aggressive growth projections.

"Gabriel Lamas and his local team are working around the clock. They're not just meeting industry expectations-they're rewriting them." - Luke Rossy, Chief Operating Officer.

HIVE's Country President, Gabriel Lamas, and his team are instrumental in driving the company's success in Paraguay. It’s their collective tireless efforts that go beyond the industry standard to break new ground, improving efficiency and community engagement, that’s truly setting the pace. This local expertise has proven to be invaluable to HIVE’s operations and community building efforts in the region.

"What's truly remarkable is the vision of HIVE's executive team and their unwavering belief in Paraguay." - Gabriel Lamas, HIVE's Country President.

Looking toward the horizon, HIVE has a clearly defined plan to accelerate its expansion. The company is working towards hitting 25 EH/s by Thanksgiving 2025. This ambitious target is a reflection of HIVE’s confidence in its robust prospects for growth. So far, it aims to double its operations and increase its share in Bitcoin mining space.

Even with this positive view of the future, there are risks that HIVE wants to make sure investors understand and beware. The firm warns of numerous factors that could cause revenue not to grow as much or as quickly as expected or even decline. Rising or sometimes plummeting Bitcoin prices combined with rising or changing mining difficulty would weigh heavily on HIVE’s profitability.

HIVE further acknowledges the risk that it will be unable to profitably monetize its existing digital currency holdings. As digital currencies demonstrate high volatility, U.S. adverse market conditions could limit HIVE’s ability to convert its holdings to cash at acceptable prices, if at all.

As a result, a further downturn in digital currency prices would materially adversely affect HIVE’s business. As Bitcoin prices go down mining becomes less profitable which must eventually result in lower revenue and earnings for the company. HIVE’s financial performance is heavily impacted by the state of the cryptocurrency space as a whole.

HIVE Digital Technologies is making significant strides in the Bitcoin mining industry through strategic expansions, technological advancements, and a commitment to sustainability. The company’s explosive growth, particularly in Paraguay. This expansion firmly positions it as one of the most important players in the rapidly evolving world of cryptocurrency mining.

HIVE’s emphasis on using sustainable hydro power for its operations highlights its commitment to environmentally responsible mining practices. Through this pilot project, HIVE is capitalizing on Paraguay’s vast renewable hydroelectric energy stores. This initiative seeks to reduce its overall carbon footprint and create a more environmentally-friendly Bitcoin network.

HIVE’s recent expansion into Paraguay has proven to be a fruitful move for the company as well as the local community. HIVE stands committed to being a good and productive corporate citizen. They’ve backed up their local home rule with the creation of hundreds of new local jobs and substantial new infrastructure investment.

HIVE’s strategic vision goes beyond their day-to-day operations, with big plans for future expansion and further technological innovation. The company is focused on growing its own hashrate and increasing fleet efficiency. This commitment helps them stay a leader in the Bitcoin mining ecosystem.