HIVE Digital Technologies Ltd. Announcement

HIVE Digital Technologies Ltd. (HIVE) has entered into definitive agreements for a 100 megawatt (“MW”) digital asset mining operation in Paraguay, following a prior news release on July 22, 2024.

Agreements Overview

The agreements consist of:
1. Share Purchase Agreement (SPA) – between HIVE Paraguay, a subsidiary of HIVE, and W3X SA.
2. Construction Agreement – among W3X SA and a local contractor.

All amounts in US dollars unless specified.

Statement from Leadership

Aydin Kilic, President and CEO of HIVE, stated:

“We are proud to announce the acquisition of a 100 MW PPA in Paraguay, utilizing green and clean energy sourced from the Itaipu hydroelectric dam.”

HIVE is designing infrastructure to increase its global Bitcoin mining capacity to 12.1 EH/s. However, the investment is capped at 100 MW due to unexpected changes in fiscal policy. HIVE plans to explore investments in countries with stable capital for essential infrastructure.

Frank Holmes, Executive Chairman of HIVE, added:

“Stable fiscal policies are crucial in attracting and maintaining continued foreign direct investment.”

Strategic Investment Plans

HIVE responded to a proposed 14% energy tariff increase affecting Bitcoin data centers, expressing concerns regarding uncertainties these policies create. Despite initial plans for substantial investments in Paraguayan projects, they are reassessing based on the proposed tariff increase and lack of clarity in energy pricing.

Economic Implications
A 100 MW project could attract substantial Foreign Direct Investment (FDI) into Paraguay, creating local jobs and contributing over $100 million in electricity payments over three years. HIVE aims to transform high-voltage electricity into usable power while providing economic stability for Paraguay amid the depreciation of the Paraguayan guaraní against the U.S. dollar.

Mr. Holmes emphasized the importance of electrical infrastructure for economic growth, referencing studies from the World Bank and IEA.

Industry Concerns

HIVE is not alone in its caution; other public Bitcoin miners are similarly reevaluating plans due to tariff proposals. The need for stable government policies to sustain foreign investment is echoed by industry leaders.

HIVE’s sustainable investment strategy is based on a transparent ‘Return on Invested Capital’ (ROIC) model, focusing on long-term community engagement and business growth in Paraguay.