HIVE Digital Technologies, one of the world’s largest Bitcoin miners, recently completed a major expansion of its hydroelectric mining facility in Paraguay, bringing the facility’s total capacity to 300 MW.
The company currently contributes over 24 EH/s (exahash per second) to the global Bitcoin network, and reports generating 289 BTC in October alone. The company also posted a record quarterly profit of $87.3 million, almost four times as much as last year, largely driven by Paraguay’s growth and increased mining capacity.
Management says the business is now on track to generate nearly $400 million a year from Bitcoin mining, and can maintain a profit of about 50 cents on the dollar even after paying the electricity bill.
Related: Bitcoin miner who stole US$1 billion worth of electricity from Malaysian power grid faces crackdown
HIVE’s Iguazu mine is powered by the large Itaipu dam hydroelectric power plant, providing access to clean and cheap energy. This is a big part of Paraguay’s appeal for crypto miners. In fact, cryptocurrency mining in this country currently operates under a legal framework that treats it as an industrial activity.
Paraguay is growing rapidly and has earned a reputation as an eco-friendly crypto mining haven for Bitcoin miners, as it operates primarily on clean hydroelectric power. As such, the country is currently attracting large-scale investments from abroad and is transforming into an important location for global mining operations.
hidden costs
But not all locals are optimistic. For example, the community of Villarrica (Guaira department) revolted against a cryptocurrency farm run by BitFarms.
For six months in 2024, residents suffered from constant noise (industrial-scale cooling fans running day and night), causing insomnia, anxiety, and stress-related health problems.
“Collapse in 2029” scenario
Additionally, the Paraguayan Industrial Union (UIP) has warned that if mining demand continues to grow, Paraguay’s power grid could collapse as early as 2029. The warning directly links potential infrastructure failures in the country to the expansion of unregulated cryptocurrency mining.
At the same time, HIVE’s growth drive goes hand-in-hand with its focus on clean energy, demonstrating how large-scale cryptocurrency mining can be carried out while taking environmental impact into account. The company’s management positions this model as a more responsible alternative to operations that rely primarily on fossil fuels.
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