HIVE Digital Boosts Bitcoin Mining with 100MW Hydroelectric Expansion in Paraguay

Key Points

• Hive Digital Technologies plans to build a 100-megawatt hydroelectric-powered data center in Paraguay to expand its Bitcoin mining capacity.
• The project is part of Hive’s strategy to increase its global Bitcoin mining capacity to 35 exahashes per second by 2026.

Hive Digital Technologies has struck a deal to construct a 100-megawatt hydroelectric-powered data center at its location in Yguazú, Paraguay.

This development is crucial in their strategy to boost worldwide Bitcoin mining capacity to 35 exahashes per second by 2026.

Project Extension and Renewable Mining

The project is a continuation of Hive’s existing operations in the area, which started with the purchase of Bitfarms’ operations in Paraguay in early 2025.

This will increase the total renewable mining capacity at the Paraguayan site to 400 MW, making it the largest facility of its kind in the country.

The new phase will draw power from the Itaipú Dam, recognized for its low electricity costs and minimal carbon footprint.

Boosting Global Mining Power

Hive has increased its global Bitcoin mining power from 6 EH/s at the beginning of 2025 to nearly 22 EH/s as of October, and aims to reach 25 EH/s by the end of the year.

The forthcoming 100 MW expansion is set to commence construction in early 2026, with full commissioning expected to be completed in the third quarter of that year.

Hive is planning a fivefold increase in its high-performance computing and AI operations, a trend that started in 2024 due to the hype around AI.

This expansion is linked to strategic partnerships with entities like Bell Canada to enhance its computing footprint and strengthen long-term diversification in AI workloads.

Positive Impact on Local Economy

Hive’s move bolsters Paraguay’s status as a Bitcoin mining hub, demonstrating both economic and environmental advantages.

The Yguazú site currently produces 8.5 BTC per day, bolstering local employment and investment in community infrastructure.

By utilizing renewable energy, Hive maintains low operational costs, which aids in maintaining profitability as competition drives global hashrates higher.

Notably, Hive is among the few miners that are investing in increasing its hashrate, as noted by Matthew Sigel, Head of Research at VanEck.

This trend is encouraged by the Paraguayan government’s pro-crypto regulatory stance, which exempts mining energy use from taxes until 2027, offering an extra incentive for such investments.

This exemption only applies to crypto-regulated mining operations, which are highly reactive against illegal Bitcoin miners.

Stock Performance Amidst Operational Milestones

Despite Hive Digital Technologies’ recent advancements in Paraguay and the completion of new facilities, there hasn’t been a significant impact on the performance of the equity markets.

On October 21, the stocks were down 3.58%, but they rose by nearly 28% in a single day in early October 2025, with a weekly decrease of over 21% and a year-to-date gain of almost 85%.

This new milestone signifies a significant step forward for Paraguay’s clean energy sector and solidifies its position as a regional hub for mining innovation.

It also underscores HIVE’s ongoing commitment to infrastructure development and sustainable progress in Latin America and in the Bitcoin mining industry.