Hive Digital Technologies Grows Bitcoin Mining Capacity with Paraguay Expansion

Hive Digital Technologies reaches 10 EH/s in Bitcoin mining capacity, aiming for 18 EH/s by September. The growth is largely due to the acquisition of Bitfarms facilities in Paraguay and the successful operation of subsidiary Hive HPC, now at a $20 million run rate. Executive Chairman Frank Holmes discusses the implications of these advancements and the interconnectivity between Bitcoin mining and high-performance computing.

Hive Digital Technologies is making significant strides in its Bitcoin mining capacity, recently achieving a notable milestone of 10 Exahash per second (EH/s). This growth has been rapidly propelled by the acquisition of partially completed facilities from Bitfarms in Paraguay. Executive Chairman Frank Holmes stated that this strategic acquisition has allowed the company to accelerate its progress and set an ambitious target of reaching 18 EH/s by late summer.

Holmes elaborated on the importance of the 10 EH/s mark within the Bitcoin ecosystem, comparing it to milestones within the gold mining sector. He highlighted how producing 100,000 ounces of gold begins to attract institutional interest, with further milestones leading to even greater valuation increases. “Hitting 10 Exahash, then moving to 20 Exahash makes a significant difference for institutional quality and investment grade,” he explained.

The speed of Hive’s growth can largely be attributed to its new facilities in Paraguay, where the company had the opportunity to finish construction quickly. Holmes pointed out that the surplus of miners, which were previously less profitable in Canada, are thriving in Paraguay due to lower energy costs. “One penny does make a significant difference,” he mentioned.

Hive’s high-performance computing division, Hive HPC, is also showing impressive growth. The subsidiary has reached a run rate of $20 million, thanks to the leadership of its new president, Craig Tavares. Holmes noted that Tavares is positioned to drive further growth, with expectations of reaching $50 million by year’s end. “Our H200s are up and going, the Nvidia chips — it’s very exciting for the company,” Holmes remarked.

When discussing the interplay between Hive and Hive HPC, Holmes pointed out that both require robust electricity and infrastructure. The differences in their operational costs stem from the scale of infrastructure needed for high-performance computing, which can be significantly more expensive than Bitcoin facilities.

He highlighted how the current expansions in Bitcoin mining are creating opportunities for supporting high-performance computing initiatives globally. CoreWeave’s partnership with Core Scientific exemplifies how Bitcoin mining can provide the necessary energy for expanding AI capabilities. “The big boom is AI,” Holmes noted.

In summary, Hive Digital Technologies has achieved an important milestone in Bitcoin mining, reaching 10 EH/s and targeting 18 EH/s soon. The acquisition of Bitfarms’ facilities in Paraguay played a crucial role in this rapid scale-up. Additionally, the growth of Hive HPC under Craig Tavares signals strong potential for the company’s future operations in both Bitcoin mining and high-performance computing. Overall, Hive remains well-positioned to thrive amidst evolving market dynamics.

Original Source: www.proactiveinvestors.com