Hive has started work on its Paraguayan mining site and is investing nearly $20 million in new Canaan ASIC miners. The purchase of 6,500 Avalon A1566 units will enhance mining efficiency and increase returns.
Updates on Paraguayan Mining Site
Hive, a company that specializes in bitcoin mining and artificial intelligence, has recently disclosed that it has initiated construction on a site in Paraguay that was previously disclosed.
Additionally, it intends to upgrade a portion of its mining hardware. In order to accomplish this, Hive disclosed an investment of roughly $20 million in application-specific integrated circuits (ASICs) bearing the Canaan brand.
Hive disclosed that it had acquired 6,500 Canaan Avalon A1566 units. The first 500 units are scheduled to arrive this week, while the remaining units will be delivered in four monthly installments from December 2024 to March 2025.
President and CEO Aydin Kilic of Hive discussed the significance of this acquisition for the company, asserting that it was “a substantial advancement in our optimized-ROI investment strategy.”
The Avalon A1566 was chosen by Hive due to its superior ROI in both bear and bull market conditions, which in turn enables the company to increase its mining numbers. The Canaan miners are replacing older models with less mining power and efficiency.
Hive disclosed that the Paraguayan mining site had commenced construction and that all electrical apparatus had been procured. “We expect 30 MW of mining capacity, which is equivalent to approximately 2 EH/s, to be operational by the beginning of calendar Q2 2025. This will increase HIVE’s total hashrate to 8 EH/s by the conclusion of calendar Q2 2025,” Kilic emphasized.
This action dispels the uncertainties that existed prior to the initial announcement in July, which indicated that negotiations were in a state of progress but were contingent upon the company’s ultimate approval.
When numerous mining companies that were already operating in the country protested power increases that had an impact on the economic sustainability of their operations, Hive’s movements occurred.
Nevertheless, the government disregarded these apprehensions and the objections regarding the legality of these increases, and a number of organizations shifted their operations to more crypto-friendly countries, such as Brazil or El Salvador.
