HIVE Digital set to acquire Bitcoin miner Bitfarms’ 200 MW Paraguay site in $85 million deal
2025-01-28
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HIVE Digital has signed a binding letter of intent to acquire fellow Bitcoin miner Bitfarms’ partially-completed 200 MW site in Yguazú, Paraguay, in a deal totaling approximately $85 million designed to further tap into the country’s abundant hydroelectric power.
Under the terms of the deal, the $56 million acquisition includes $25 million payable at closing, scheduled for Q1 2025 and $31 million payable in equal installments over the following six months, financed by HIVE's existing cash and digital currency balance sheet, according to a statement on Tuesday. Bitfarms will also receive $19 million as reimbursement for power deposits made to the local utility company and approximately $10 million in remaining capital obligations like construction costs.
The Yguazú site is being developed over two phases, the first of which is 80% complete and scheduled for completion by April, HIVE said, adding 6 EH/s in capacity. The second phase is expected to be completed by August and will add a further 6.5 EH/s via hydro-cooled ASICs. HIVE estimates the total net costs to finish the site to be $400,000 per MW upon completion.
HIVE’s leadership met with Paraguayan President Santiago Peña and other political leaders in recent weeks, gaining support for its commitment to sustainable growth in the country. Following completion, HIVE’s operational capacity in Paraguay will total 300 MW after construction of its existing 100 MW mining facility in the country, announced last July. 
Alongside its additional facilities in Canada and Sweden, HIVE plans to increase its hashrate capacity from 6 EH/s to 25 EH/s by September — representing 3% of the global Bitcoin network — helping the firm to drive its $500 million top-line annual revenue target.
"Reaching 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement,” HIVE Executive Chairman Frank Holmes said. “Paraguay's political stability, reinforced by President Santiago Peña's recent presence at President Trump's inauguration, highlights the country's alignment with U.S. economic growth priorities."
“This acquisition allows us to scale operations by an incredible 400%,” HIVE President and CEO Aydin Kilic added. “Simultaneously, we remain steadfast in our community commitments, investing in critical infrastructure, supporting education, and creating quality jobs in Paraguay.”
HIVE has already secured 15 EH/s worth of Bitmain S21+ hydro ASICs and Canaan Avalon A-series miners, with plans for additional purchases in the coming months to reach the ambitious 25 EH/s target.
In July 2023, HIVE Digital rebranded from HIVE Blockchain Technologies amid a diversification pivot to data center hosting for AI compute.
Bitfarms plans to reinvest the capital in US growth opportunities
In a separate statement on Tuesday, Bitfarms said it intends to reinvest the capital from the HIVE deal into U.S. growth opportunities.
“Bitfarms will be reinvesting the capital from this sale towards its 1 GW growth pipeline in the U.S. for BTC and HPC/AI infrastructure which marks a significant milestone in our transition from an international Bitcoin miner to a North American energy and compute infrastructure company,” Bitfarms CEO Ben Gagnon said.
Bitfarms added that the transaction would significantly reduce its anticipated 2025 capital requirements and rebalance its portfolio to approximately 80% North American and 20% international operation by the end of the year, aided by its upcoming acquisition of Stronghold Digital Mining. The deal lowers Bitfarms’ estimated average power costs by around 10% without impacting its miner deployment schedule but reduces its year-end 2025 capacity from 955 MW to 755 MW.
“We remain fully committed to our current operations in Latin America, with three sites totaling 144 MW that all benefit from long-term power contracts, competitive pricing and geographical diversification," Gagnon said. "This shift towards U.S.-based assets is in-line with our strategy to diversify beyond Bitcoin mining and capitalize on the significant growth opportunities in HPC/AI.”
Bitfarms was embroiled in a takeover saga for much of 2024, with Riot Platforms keen to acquire overall control of the firm. However, a settlement agreement was reached in September, prohibiting Riot from acquiring more than 20% of Bitfarms without prior board approval.
HIVE is the 15th largest public Bitcoin miner with a $350 million market cap. Bitfarms’ market cap currently stands at $660 million. HIVE shares are currently up 3.2% in pre-market trading on Tuesday, while BITF has gained 4.3%, according to TradingView.
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