A major deal between two Bitcoin mining giants
The Bitcoin mining company #HiveDigitalTechnologies has just announced a deal to acquire the mining facility of #Bitfarms in Yguazú, Paraguay for a total value of 85 million USD, including related financial obligations.
This transaction includes:
56 million USD to acquire infrastructure. 19 million USD to reimburse the deposit for the power purchase commitment. 10 million USD for remaining capital obligations.
Increasing capacity more than 3 times
With the new facility, Hive's hash rate will increase significantly from 6 EH/s to 25 EH/s by September. This positions Hive as one of the largest Bitcoin mining companies in the market. Hive also estimates development costs for the facility to be up to 400,000 USD per megawatt (MW) with the goal of building a 200 MW capacity facility.
Effects on the stock market
After the announcement, Hive's stock price recovered, rising 4.68% to 2.91 USD in pre-market trading. Previously, Hive's stock had dropped more than 10% due to a massive sell-off in the crypto and stock markets. Meanwhile, Bitfarms' stock also increased by 4.29% to 1.46 USD.
Significance of the transaction
This acquisition not only significantly boosts Hive's mining capacity but also reinforces Paraguay's position as a Bitcoin mining hotspot due to low electricity prices and clean energy from hydroelectric power. This is a strategic move for Hive to optimize costs and enhance long-term profitability.
🚨 Note: Investing in Bitcoin mining carries risks, especially in the context of highly volatile market prices. #anhbacong