Hive Digital Technologies has announced plans to expand to Paraguay to capitalize on crypto mining in the region.
On Monday, the Canadian crypto miner Hive Digital announced plans to expand to Paraguay. In the announcement, Hive plans to establish a 100-megawatt mining facility in Paraguay.
Hive Digital Expanding to Paraguay
The Bitcoin miner intends to power its mining activities using green energy from Itaipu hydroelectric dam. As global crypto miners face electricity shortages, Paraguay boasts an excess renewable energy supply.
The country relies on green energy from Itaipu hydroelectric dam to meet industrial and household needs.
The excess power from the dam is utilized to mine crypto assets. Having toured Paraguay for a business trip, the Hive team met with the President of Paraguay, Santiago Pena, and senior cabinet ministers.
During the meeting, the Bitcoin miners identified viable opportunities in Paraguay that are crucial to expanding Hive’s revenue streams. Based on the suitability of Paraguay, the Hive team plans to increase its mining capacity from 5.6 exahashes per second to 12.1 EH/s.
Hive has acquired 500 Bitmain S21 Antiminers, which will be shipped soon to boost its mining capacity. Acquiring new mining rigs was critical to allow Hive to sustain an active mining network and mint new tokens.
The Bitcoin miner is expected to establish multiple warehouses to store the mining machinery. Compared to the traditional method for mining crypto, the advanced method requires heavy machinery that consumes large amounts of energy.
Attractiveness of the Paraguay Crypto Market
Hive will also be required to spot an area suitable for mining crypto assets. In the announcement, Hive confirmed it had already identified an appropriate location to establish the proposed mining facility.
In the meantime, Bitcoin miners plan to comply with Paraguay’s regulatory requirements before expanding its footprint to the region.
Having gained recognition as a compliant crypto miner, the Hive team will undergo due diligence checks and regulatory and board approval before operating in Paraguay. If the Paraguan regulators authorize Hive operation in the region, the Bitcoin miner will operate in four countries.
Hive operates as a regulated Bitcoin miner in Canada, Sweden, and Iceland. The Bitcoin miners rank among the world’s largest miners listed under the HIVE symbol on the Nasdaq, Frankfurt Stock Exchange, and TSX Venture Exchange.
The Bitcoin miner currently holds 2521 BTC valued at $170 million at the current market price.
Crypto Miners Flock to Paraguay for Cheap Energy
A statement from Hive executive chairman Frank Holmes revealed that expanding to Paraguay would boost the firm’s profitability. The executive envisaged that the expansion to the South American country would enable Hive to attain its long-term objective and stimulate economic development in the region.
Holmes believes Hive’s Paraguay operation will foster tech development and innovation. Also, the executive confirmed that the impending expansion to Paraguay will offer employment opportunities to the locals.
This implies that Hive operation in Paraguay will play a significant role in stimulating economic development. Hive will join other crypto miners, including Bitfarm, as they seek to cement their market position in South America.
Lately, Paraguay has become an epicenter for crypto miners, offering cheap and sustainable energy. The attractiveness of the Paraguay crypto industry obliged the lawmakers to enact tougher rules to uphold compliance.
Paraguay to Increase Electricity Price
Earlier this month, the Paraguay authority confiscated 450 bitcoin mining machinery from illegal miners. The local authority claimed that 2700 miners were illegally connected to the national power grid.
The Paraguay authority announced a plan to shut down crypto miners operating illegally. Also, the Paraguay authorities revealed plans to increase the price of electricity for local crypto miners starting on August 1.
On July 19, the Paraguay energy regulators announced plans to enact strict energy rules to address the challenge of power shortages. Under the new energy rules, non-compliant crypto miners will face hefty fines and potentially legal action.
The proposed energy rules attracted criticism from the crypto community across social media platforms. The crypto miners argued that enacting the new legislation would stifle the Paraguay economy, leading to a loss of $1.5 billion.
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