Hive Expands Paraguay Bitcoin Mining Operations Despite Market Volatility

Source: CryptoNewsNet Original Title: Hive boosts Paraguay Bitcoin mining as rivals pivot to HPC Original Link: Hive Digital Technologies continues to expand Bitcoin mining operations despite recent market downturns, according to statements from the company’s executive chairman Frank Holmes.

Strategic Expansion in Paraguay

Holmes attributed recent price weakness to excessive leverage in the market, stating that forced liquidations create short-term contagion effects. “It was not real cash buying. It was a lot of leverage buying. And anytime you get a lot of leverage buying and someone gets forced out you create a contagion and knock it down short term,” Holmes said.

The company has increased daily Bitcoin production from three to ten Bitcoin per day and plans further expansion. “We have been able to more than triple our daily Bitcoin production,” he stated.

Bitcoin Mining and HPC as Twin Engines

Several major Bitcoin mining companies have announced high-performance computing centers or business shifts toward HPC operations, viewing HPC as a lower-risk alternative that can generate higher revenue compared to Bitcoin mining volatility.

Holmes described the two business lines as complementary rather than competitive. “Our philosophy is to run parallel. Not one is better than the other. They are both needed. And to build HPC, the fastest way to get your money back is to build a Bitcoin data center,” he said.

Paraguay’s Advantages

The company has identified expansion opportunities in Paraguay, where it plans to develop power and data center infrastructure. Holmes characterized the nation as offering favorable conditions for Bitcoin mining and praised the government’s pro-miner policies.

Paraguay has historically sold excess electricity to neighboring countries. Bitcoin mining operations provide regular monthly payments for this surplus energy capacity, benefiting local utilities.

“Bitcoin miners save the day. (The utility providers) get paid every month. Not only do we build substations all across the country, we pay them every month,” Holmes stated.

Hive Digital Technologies plans to establish data centers in Paraguay that will rank among the company’s most powerful facilities. Holmes indicated that short-term price fluctuations would not alter the company’s infrastructure development plans. “We believe that Bitcoin can come off in the short term but it is not going to deter us from building out,” he said.