Hive Digital Expands Paraguay Hydro Bitcoin Mining Capacity to 400MW
Hive Digital has finalized a deal to build a 100MW hydroelectric-powered data center at its Yguazú site in Paraguay. This expansion will increase its renewable Bitcoin mining capacity to 400MW by Q3 2026, tapping low-cost, low-carbon power from the Itaipú Dam. Construction begins in early 2026. Since acquiring Bitfarms’ Paraguay operations in January 2025, Hive’s global hashrate rose from 6EH/s to nearly 22EH/s by October and is on track to reach 25EH/s by year-end. The Yguazú site now produces about 8.5 BTC per day. Paraguay’s regulatory tax exemption on mining power until 2027 and low electricity costs improve margins. Strategic partnerships, including with Bell Canada, will boost high-performance computing and AI workloads fivefold. The expansion strengthens network security and may influence mining difficulty and competition. Despite an 85% year-to-date stock gain, HIVE shares dipped 3.6% on October 21 amid volatility.
Neutral
The expansion of Hive Digital’s hydroelectric Bitcoin mining capacity enhances network security and improves miner margins through lower costs and tax exemptions. In the short term, increased hashrate may raise mining difficulty and add selling pressure from larger outputs, balancing any bullish supply-driven gains. Over the long term, stronger infrastructure and renewable energy use support sustainable network growth. Overall, the news is unlikely to shift Bitcoin’s price trajectory significantly, resulting in a neutral impact on market sentiment.