1 month ago
Several crypto-focused organizations — including Bitcoin (BTC) mining companies — are eyeing a US return, chiefly driven by uncertain geopolitical tensions. Still, BTC miner HIVE Digital Technologies is doubling down connected the untapped imaginable of the Latin American market.
In an exclusive interrogation with Cointelegraph, HIVE Digital Technologies’ president and CEO, Aydin Kilic, said that Paraguay presents a compelling semipermanent accidental equipped with “geopolitical stability, low-cost hydro energy, and a authorities unfastened to overseas investment”.
Picking up from wherever Bitfarms near off
HIVE acquired Bitfarms’ 200 MW Yguazú installation for $56 cardinal in January. Phase 1 infrastructure of a 100 MW information halfway astatine the tract was completed successful April, supporting 5 EH/s of Application-Specific Integrated Circuit (ASIC) mining.
HIVE plans to grow to 300 megawatts (MW) of mining facilities successful Paraguay successful 2025. It aims to summation the hashrate to 25 exahash per 2nd (EH/s) by September.
Related: Bitfarms sells Paraguay tract to Hive for $85M, refocuses connected US
The CEO said HIVE has spent implicit a twelvemonth cultivating strong, cooperative relationships with section stakeholders successful Paraguay. “We are investing successful section hiring, grooming programs, and beardown vendor partnerships. Our extremity is to make a section ecosystem of enactment that keeps costs unchangeable portion boosting uptime and efficiency,” helium added.
While determination was a projected prohibition connected crypto mining successful Paraguay owed to the unit it poses connected the country’s energy proviso and imaginable rising energy prices, Aydin said that their squad is actively progressive with policymakers to enactment clarity and practice successful mining legislation.
HIVE embraces planetary diversification to hedge against geopolitical risks
HIVE has information centers successful Canada, Sweden and Paraguay. Contrasting with its ongoing LATAM expansion, the miner is relocating its office to San Antonio, Texas.
“Our increasing beingness successful North and South America creates a balanced footprint resilient to geopolitical oregon commercialized argumentation shocks,” Kilic said.
The US tariff connected China raised concerns astir the rising outgo of mining equipment, similar ASICs. Kilic told Cointelegraph that they person diversified sourcing channels for ASICs and electrical components to debar single-region dependencies.
Related: Bitcoin miners should wage costs successful depreciating currency — Ledn exec
To guarantee scaling from 6 to 25 EH/s, the CEO said they person locked successful cardinal ASIC orders, secured powerfulness entree done semipermanent PPAs and expanded engineering capableness crossed 3 continents to woody with marketplace and technological uncertainties.
Profitability successful Bitcoin mining is yet a physics equation
Kilic sees Bitcoin mining nett arsenic a physics equation. He told Cointelegraph that superior and operational expenses beryllium connected hashrate-sensitive investigation to question the astir accretive mode to money their concern done BTC treasury and ATM sales.
While the solo mining assemblage whitethorn person much trouble making profits, the CEO suggested the absorption should beryllium connected the variables it tin control: “Whether you tally 1 rig oregon 10 thousand, it comes down to controlling inputs similar opex, powerfulness costs, and instrumentality uptime to thrust predictable outputs — maximizing vigor efficiency, minimizing downtime and being disciplined with treasury management.”
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