HIVE Digital Acquires Bitfarms' Yguazú Bitcoin Mining Facility for $56 Million, Expanding Global Mining Capacity
HIVE Digital has successfully concluded the acquisition of a partially completed Bitcoin mining facility from Bitfarms, located in Yguazú, Paraguay. The deal, valued at $56 million, grants HIVE control of the 200-megawatt site, which is set to be developed further into a fully operational mining hub.
The payment structure for the transaction involves an initial sum of $25 million, which is due at the closing of the deal in the first quarter of 2025. The remaining $31 million will be paid in six equal monthly installments, offering a clear payment schedule for the acquisition.
Phase 2 of the development is set to be finalized by August 31, 2025. This phase will involve the installation of hydro-cooled Bitmain S21+ ASICs, further enhancing the facility’s performance by adding an additional 6.5 EH/s of capacity. The Texas-based mining company has estimated the cost of completing the site at $400,000 per megawatt (MW). This will be funded through HIVE’s existing cash reserves and its Bitcoin holdings.
As part of this acquisition, HIVE will also take over $19 million in pre-existing power purchase agreement (PPA) deposits that Bitfarms had paid to the Paraguayan utility company ANDE. This acquisition aligns with HIVE’s strategic goal of expanding its Bitcoin mining capacity to 25 EH/s by September 2025. As of December 2024, HIVE reported a realized hashrate of 5.46 EH/s and held 2,805 BTC in its reserves. Additionally, the company has pre-ordered 15 EH/s worth of hydro-cooled ASIC miners from Bitmain and Canaan to further support its growth trajectory.
Conclusion
Despite this strategic pivot, Bitfarms remains committed to its operations in Latin America, where it currently operates three other facilities with a combined total capacity of 144 MW. These facilities are supported by long-term power agreements that ensure their continued operation.
This latest development follows the cancellation of a proposed merger between Bitfarms and Riot Platforms Inc. in 2024. The merger would have resulted in the creation of 15 mining facilities across various regions, including Paraguay. However, after careful consideration, Bitfarms’ board decided to reject the merger, leading to the termination of the acquisition attempt between the two companies.
