Hive Digital Technologies is set to revolutionize the bitcoin mining landscape with its acquisition of a Paraguayan site from Bitfarms for $85 million. The move is expected to triple Hive’s hashrate and boost its competitiveness in the market.
Bitcoin Miner Hive Digital to Buy Paraguay Site From Bitfarms for $85M
Acquisition Details
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‘Hive Digital Technologies has agreed to purchase a site in Paraguay from fellow bitcoin miner Bitfarms for a total of $85 million including assumed obligations.’
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The acquisition will see Hive pay $56 million for the site itself, reimburse $19 million of deposits for power-purchase commitments, and another $10 million for ‘remaining capital obligations.’
Hive Digital is a leading provider of Bitcoin mining solutions.
The company offers high-performance mining equipment, including ASIC chips and rigs, designed to optimize hash rates and energy efficiency.
Hive Digital's products are built with advanced cooling systems and power management technologies, ensuring reliable operation and minimizing downtime.
With a focus on innovation and customer support, Hive Digital has established itself as a trusted name in the Bitcoin mining industry.
Hasrate Increase
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‘The acquisition of the site in Yguazú, Paraguay will more than triple Hive’s hashrate to 25 exahash per second (Eh/s) by September.’
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This significant increase in hashrate is expected to boost Hive‘s mining capabilities and competitiveness in the market.
HasRate increase refers to a rise in the rate of hash power, which is the processing power of a blockchain network.
This can be caused by an influx of new miners joining the network or an improvement in mining hardware efficiency.
As more miners join, the difficulty level of solving complex mathematical equations also increases, requiring more computational power and energy consumption.
According to a study, the global hash rate has grown from 30 EH/s in 2020 to over 150 EH/s in 2022, resulting in increased energy consumption and environmental concerns.
Development Costs
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Hive estimated that developing the locate into a 200 MW site would cost $400,000 per MW.
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This investment will be crucial in maximizing the potential of the acquired site and ensuring its efficient operation.
Market Reaction
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In response to the news, Hive‘s shares are trading 4.68% higher at $2.91 in pre-market trading, while Bitfarms is 4.29% higher at $1.46.
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These gains reflect investors’ optimism about the potential benefits of the acquisition for both companies.
Background on Hive Digital Technologies
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Hive Digital Technologies is a bitcoin miner with a growing presence in the market.
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‘The company’s commitment to expanding its operations and increasing its hashrate demonstrates its ambition to become a major player in the industry.’
- coindesk.com | Bitcoin Miner Hive Digital to Buy Paraguay Site From Bitfarms for $85M
- businessinsider.com | Bitcoin Miner Hive Digital to Buy Paraguay Site From Bitfarms for $85M
