While many cryptocurrency mining companies, such as Bitcoin (BTCUSD) miners, are returning to the U.S. market amid rising geopolitical tensions, HIVE Digital Technologies is taking a contrary path, exploring the untapped potential of Latin America.
In an interview with Cointelegraph, HIVE's President and CEO, Aydin Kelech, described Paraguay as an attractive long-term opportunity, citing its "political stability, availability of low-cost hydroelectric power, and the openness of its government to foreign investments."
HIVE builds on previous investments by Bitfarms:
In January, HIVE acquired Bitfarms' Yguazú facility with a capacity of 200 megawatts for $56 million.
The first phase, which includes a data center with a capacity of 100 megawatts, was launched in April, allowing for mining performance of 5 exahashes per second (EH/s) using ASIC devices. The company plans to expand its capacity to 300 megawatts by 2025 and increase the hash rate to 25 EH/s by September.
Kelech explained that HIVE has spent over a year building strong local partnerships, including hiring local staff, training programs, and strategic relationships with suppliers.
He added: "Our goal is to develop a stable local system that enhances operational efficiency and reduces costs."
Despite previous proposals to ban mining in Paraguay due to its impact on the electricity grid, Kelech confirmed that his company is working with policymakers to provide regulatory clarity and establish responsible frameworks for cryptocurrency mining.
A global diversification strategy to hedge against risks:
HIVE operates data centers in Canada, Sweden, and Paraguay, and recently announced its move to its headquarters in San Antonio, Texas.
Kelech explained: "Our balanced presence in North and South America gives us greater resilience against political or economic disruptions." He added that HIVE has taken steps to diversify its supply chains away from China, anticipating rising tariffs and their impact on mining device prices.
To ensure planned expansion, HIVE has entered into pre-agreements with ASIC suppliers, signed long-term power contracts, and expanded its engineering teams across three continents to keep pace with market and technology fluctuations.
Profitability in mining: a calculable equation:
Kelech believes that Bitcoin mining profitability depends on a "physical equation," noting that operational and capital expenses are affected by careful analysis of the hash rate.
He emphasized the importance of controlling operational inputs, such as electricity costs and uptime, stating: "Whether you are managing one device or thousands, energy efficiency, reducing downtime, and financial discipline are the keys to achieving predictable outputs and sustainable profitability."