HIVE Digital acquires Bitfarms' Paraguay mine for $56M

HIVE Digital Technologies has finalised the acquisition of Bitfarms’ partially completed Bitcoin mining facility in Yguazú, Paraguay, for a total of $56 million.  

The deal involves an upfront payment of $25 million, with the remaining $31 million to be paid in six equal monthly installments.  

This 200-megawatt facility is currently 80% complete and is expected to add approximately six exahashes per second (EH/s) to HIVE's mining capacity by the second quarter of 2025.  

Phase 1 of the development is scheduled for completion by April 1, 2025, while Phase 2 will introduce hydro-cooled Bitmain S21+ ASICs, adding an additional 6.5 EH/s by August 31, 2025.  

HIVE estimates that completing the facility will cost around $400,000 per megawatt and will be funded through existing cash reserves and Bitcoin (CRYPTO:BTC) holdings.  

As part of the acquisition, HIVE will also assume $19 million in pre-existing power purchase agreement deposits made by Bitfarms to Paraguayan utility ANDE.  

This acquisition aligns with HIVE's goal to expand its Bitcoin mining capacity to 25 EH/s by September 2025.  

As of December 2024, HIVE reported a realised hashrate of 5.46 EH/s and held 2,805 BTC in reserves.  

Bitfarms' decision to sell the Yguazú facility marks a strategic shift for the company, which had initially planned to develop the site as part of its expansion into Latin America.  

Due to construction delays, Bitfarms relocated mining equipment intended for Paraguay to its facility in Pennsylvania.  

CEO Ben Gagnon indicated that proceeds from the sale will support Bitfarms' growth pipeline in the U.S., which includes infrastructure for Bitcoin mining and high-performance computing.  

Despite this sale, Bitfarms remains committed to its operations in Latin America, where it operates three other facilities with a total capacity of 144 megawatts.