HIVE Digital Sees Doubled Revenue With New Crypto Mining Center in Paraguay

Leading digital asset miner and “green” data center builder and operator HIVE Digital Technologies Ltd. has revealed plans to create a 100 megawatt (“MW”) digital asset mining operation in Paraguay. With the new crypto mining center, HIVE plans to double its revenue in the coming time.

HIVE Plans On Doubling Revenue

HIVE Digital’s Bitcoin mining operations could gain up to 6.5 Exahash per second (EH/s) from this prospective opportunity, bringing the total EH/s to 12.1 EH/s globally. With data center operations already operating in Paraguay, Canada, Sweden, Iceland, and now Iceland, this marks an important turning point for the crypto miner’s diverse growth plan. With the current expansion, HIVE Digital is targeting to double revenue and increase hashrate to over 12 exahash in the next year.

Bitcoin Mining Takes Hit Post-Halving

By the end of 2020, Bitcoin mining was becoming increasingly profitable. However, by March 2021, it seemed that this increase had stopped. A computer is used in cryptocurrency mining to solve difficult logic puzzles to verify transactions on the blockchain. The completion of this operation results in the miner receiving cryptocurrency as a block reward.

This tendency is based on the core tenet that computers with greater processing power, or hashrates, ought to be able to solve more puzzles and produce more currencies. The amount of money a miner can make from this depends on a number of variables, such as transaction fees, the total amount of electricity utilized, and the effectiveness of the gear being used.

Research by Statista highlights that this hashrate and block reward for Bitcoin miners has been falling since March 2021. That coupled with hostility from the government over power consumption makes it even more difficult for Bitcoin miners to sustain the rising demand.

Will HIVE’s Venture Be Profitable?

HIVE is planning to leverage its experience and knowledge in demand response and grid balancing to help Paraguay’s ongoing industrial expansion while making money off of excess or underutilized power assets. Furthermore, the Company’s operations in Paraguay present a special opportunity for the government because they generate consistent monthly U.S. dollar income, serve as a tactical currency hedge, and guarantee financial stability in an increasingly unstable global currency market—all of which are made possible by the fact that the Company’s energy bills will be paid in U.S. dollars.