Bitcoin mining company HIVE Digital Technologies Ltd. has signed a binding letter of intent to acquire fellow Bitcoin miner Bitfarms Ltd.’s partially completed 200 megawatt (MW) hydro-powered Bitcoin mining facility in Yguazú, Paraguay.

The $85 million deal, announced on Jan. 28, 2025, aims to leverage Paraguay’s abundant hydroelectric power and expand HIVE’s global mining capacity.

Under the agreement, HIVE will pay $56 million, including $25 million at closing, in the first quarter of 2025 and $31 million in equal installments over six months.

Bitfarms will receive an additional $19 million as reimbursement for power deposits to the local utility and $10 million for remaining construction obligations. The acquisition will be financed using HIVE’s existing cash and digital currency reserves.

Phased development plan

The Yguazú site, currently 80% complete, will be developed in two phases. Phase 1, scheduled for completion by April 2025, is set to add 6 EH/s of capacity. Phase 2, expected to be completed by August 2025, will contribute an additional 6.5 EH/s through hydro-cooled ASICs.

HIVE estimates the total cost to complete the site at $400,000 per megawatt. Upon completion, HIVE’s operational capacity in Paraguay will reach 300 MW, including a separate 100 MW facility scheduled for energization in mid-2025.

Strategic growth

HIVE plans to increase its global hashrate from 6 EH/s to 25 EH/s by September 2025, representing 3% of the Bitcoin network’s total capacity. The company has already secured 15 EH/s worth of mining equipment, including Bitmain S21+ hydro ASICs and Canaan Avalon miners, with further purchases planned.

Hashrate is the total computational power used to process and secure Bitcoin transactions on the blockchain. It measures the number of calculations performed per second, typically in exahashes per second (EH/s). A higher hashrate indicates greater network security and miner confidence in Bitcoin's long-term potential.

“Reaching 3% of the global Bitcoin mining network by September 2025, powered entirely by green energy, is a remarkable achievement. This milestone underscores our commitment to sustainability and innovation,” said Frank Holmes, Executive Chairman of HIVE.

Aydin Kilic, HIVE’s President and CEO, noted that the acquisition allows the company to scale operations by 400%.

“Our strategy is rooted in delivering consistent value to shareholders while fostering sustainable local development,” Kilic said.

Bitfarms plans to reinvest proceeds from the sale into its 1 GW growth pipeline in the US, focusing on HPC and AI infrastructure.