Hive Digital Technologies (Hive) has placed a big bet on Bitcoin mining in 2025, with plans to exceed 400% as it expands its hashrate to Paraguay.
Speaking on TheStreet Roundtable, Hive’s executive chairman Frank Holmes has broken down ambitious expansion and how he is leveraging Paraguay’s massive hydroelectric surplus to drive growth.
“We’re going to be over 400%,” Holmes said. “You had to think we were going to have triplets over the next nine months when we build Paraguay, where we have a hydroelectric surplus.”
The expansion of the Hive to Paraguay is strategic. The country produces more electricity than it consumes thanks to Itaiku Dam, one of the world’s largest hydroelectric plants. The dam, co-owned by Brazil and Paraguay, generates excess electricity that Paraguay must use for or send back to Brazil.
“Paraguay has to use that energy and return it to Brazil,” explained Holmes. “If they use it, they get US dollars. We are actually a great engine for the government because they get US dollars paid each month for that electricity, helping them build infrastructure within their communities.”
Bitcoin mining is about all hashrates. This is the computational power used to solve complex encryption puzzles and protect your network. Holmes compared it to an automotive engine:
“Do you have a four-cylinder engine or an eight-cylinder engine? And how many horsepower do you have?” he said. “We all know that if you have an eight-cylinder engine with 440 horsepower, it’s a powerful mechanical piece. The same goes for mining.”
The key to increasing the hashrate? More power and better chips.
“Some cars give 20 miles per gallon, while others give 60 miles per gallon. That’s the same as mining. They’re more energy efficient because they’re looking for a chip that gives 25 miles per gallon.”
Cheap and renewable power is the holy grail of Bitcoin mining, and Paraguay has a wealth of it. Holmes emphasized that the existence of the Hive benefits the local economy, while utilizing energy that would otherwise be wasted.
“The dam is very beautiful, Scott. It seems to be five miles long. It is the largest in the Western Hemisphere and 50/50 in Brazil,” he said.