Hive Digital buys 6,500 ASICs, starts Paraguay construction

Hive Digital Expands Bitcoin Mining Capacity and Adapts to Industry Shifts

Hive Digital, a leading Bitcoin miner, is making significant moves to upgrade its infrastructure and expand its operations globally. After the Ethereum Merge, the company shifted some of its resources to artificial intelligence (AI) mining, and now, it is focusing on scaling up its Bitcoin mining capacity. Hive Digital, listed on Nasdaq, is constructing new facilities in Paraguay, marking its fourth country of operation. The Canadian-based miner has also purchased 6,500 Canaan Avalon A1566 ASICs, with deliveries expected between December and March 2025.

Hive Digital’s Expansion and New Upgrades

The first batch of 500 new ASICs arrived in the second week of November, with additional shipments scheduled for the first quarter of 2025. This upgrade will increase Hive Digital’s hashrate from 5.6 exahashes per second (EH/s) to 6 EH/s by March, helping to boost its mining output. By the end of Q2 2025, Hive Digital expects its total hashrate to reach 8 EH/s, fueled by the new mining hardware and an additional 30 megawatts of mining capacity in Paraguay.

These new ASICs will not only expand Hive’s capacity but also improve its operational efficiency. The company expects to reduce energy consumption from 22.3 joules per terahash (J/TH) to 20.5 J/TH, enhancing the overall sustainability of its mining operations. Canaan’s CEO, Nangeng Zhang, remarked, “Hive has managed to optimize the use of its mining sites, resulting in some of the highest Bitcoin production rates per active hashrate in the industry.”

Hive Digital’s Global Presence and Future Plans

Hive Digital’s global expansion plan includes the ongoing development of its Paraguay facility, expected to have a capacity of 100 MW. Once operational, this facility will bring Hive Digital’s total hashrate to 12.5 EH/s, with an improved fleet efficiency of 17.6 J/TH. In addition to its Paraguay operations, Hive Digital has over 100 MW of capacity in Canada, and 46 MW across its facilities in Sweden and Iceland.

Adapting to Industry Changes: From Ethereum to AI

Following the Ethereum Merge, Hive Digital pivoted its business model to accommodate the shift from Ethereum’s proof-of-work (PoW) blockchain to proof-of-stake (PoS). Hive repurposed its Nvidia GPUs, originally used for Ethereum mining, to now support artificial intelligence (AI) applications. The company now operates around 38,000 Nvidia GPUs, contributing to its diversified operations and positioning itself for future growth in AI mining.

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