HIVE Digital invests $56 million to acquire a Bitfarms mining facility located in Paraguay

ChainCatcher news, according to Newsfile, Bitcoin mining company HIVE Digital announced the completion of a $56 million deal to acquire a partially completed 200 megawatt (MW) Bitcoin mining facility in Paraguay's Iguazu from Canadian miner Bitfarms.

HIVE signed a binding letter of intent with Bitfarms and expects to expand its Bitcoin mining hash rate to 25 EH/s in September through this acquisition, utilizing Paraguay's low-cost renewable hydroelectric power.

The $56 million acquisition includes a $25 million upfront payment expected to be made upon completion in the first quarter, with the remaining $31 million to be paid in six equal installments over the next six months.

The acquired mining facility will be developed in two phases, with the first phase scheduled for completion on April 1, 2025, and currently 80% complete. This initial phase includes HIVE covering the remaining costs needed to complete the power connection, which is expected to add approximately 6 EH/s of Bitcoin mining capacity and will be operational in the second quarter. The second phase is planned for completion on August 31, 2025, and will integrate water-cooled Bitmain S21+ ASICs to provide an additional 6.5 EH/s. HIVE estimates the completion cost to be $400,000 per megawatt, funded by existing cash and Bitcoin reserves.