As global crypto markets evolve, one executive is betting big on Paraguay’s hydroelectric power to redefine sustainable Bitcoin mining. Here’s how.
Frank Holmes, chairman of HIVE Digital Technologies, is steering a crypto revolution from an unexpected hub: Paraguay. Leveraging the nation’s vast hydroelectric resources, HIVE aims to quadruple its mining capacity by 2025 while integrating artificial intelligence (AI). Holmes, a seasoned financier and speaker at May’s Consensus festival, shared exclusive insights into this high-stakes expansion.
Paraguay’s Renewable Energy Goldmine
Paraguay’s Itaipu Dam, the Western Hemisphere’s largest hydroelectric facility, produces 14 gigawatts of power, half of which flows unused to Brazil. HIVE seized this surplus, converting it into Bitcoin mining opportunities. “We monetise stranded energy,” Holmes explains, noting Paraguay earns U.S. dollars while HIVE secures cheap, clean power.
The government’s pro-business stance under President Santiago Peña further sweetens the deal. Low taxes and stable regulations position Paraguay as a crypto haven, contrasting sharply with volatile U.S. policies. Furthermore, HIVE’s infrastructure investments promise local job growth and economic stability.
From Bitcoin to AI
When Ethereum abandoned energy-intensive mining in 2022, HIVE pivoted swiftly. It replaced 130,000 AMD chips with Nvidia’s advanced GPUs, venturing into AI computing. “It’s like swapping a Bronco for a Ferrari,” Holmes quips, highlighting the technical leap.
However, AI demands higher operational precision. Mining rigs require $1 million per megawatt, while AI facilities need $10 million excluding equipment. Redundant power backups and constant uptime add complexity. Yet, Holmes remains bullish: “Diversifying into AI future-proofs our revenue,” he says, noting AI contributed $2.6 million last quarter.
Acquisitions and Megawatt Ambitions
HIVE’s growth surged in March 2025, acquiring Bitfarms 200-megawatt Yguazú facility for $56 million. Combined with a new 100-megawatt site, HIVE’s Paraguayan operations will hit 300 megawatts by mid-2025. Globally, its capacity reaches 430 megawatts, enough to power 86,000 homes.
The deal followed Bitfarms leadership turmoil and a failed Riot Platforms takeover. Paraguay’s temporary mining tariffs, now set to expire, further unsettled Bitfarms. “Their loss became our gain,” Holmes states. HIVE now races to install 6,500 high-efficiency ASIC miners, targeting 25 exahashes per second by September.
Navigating Regulatory Storms
While HIVE avoids U.S. operations due to regulatory “overreach,” Holmes eyes indexes requiring a U.S. headquarters. Paraguay’s proposed energy price hikes in 2024 tested resolve. “We advocate for stable policies,” Holmes stresses, emphasising HIVE’s grid-stabilising role.
Post-Bitcoin halving in April 2024, mining rewards dropped 32%, squeezing margins. Yet HIVE’s focus on efficiency (16.5 joules per terahash) shields it. “Debt binges sink rivals,” Holmes warns, referencing competitors reckless Bitcoin-backed loans during market highs.
Economic and Global Aspirations
Paraguay gains $100 million annually from HIVE’s energy purchases, bolstering infrastructure. Meanwhile, HIVE projects $300 million yearly revenue at 15 exahashes, a figure set to double by 2025. “Everyone wins,” Holmes asserts, citing job creation and tech-sector growth.
Globally, HIVE eyes Ethiopia’s untapped dams. “Stranded energy is universal,” Holmes notes, though political risks linger. Backed by 35 years of resource financing expertise, he bets on decentralisation to sustain Bitcoin’s ecosystem amid corporate mimicry of MicroStrategy’s holdings.
The Future: Green Mining
Holmes envisions a gold-like trajectory for Bitcoin miners, where only efficient players thrive. “Royalty models saved gold firms; we emulate that,” he says, referencing HIVE’s lean operations. Concurrently, HIVE explores Bitcoin’s Layer-2 solutions, like Lightning Network, to stay competitive.
As Consensus Festival approaches, Holmes message resonates: Sustainable mining isn’t optional; it’s survival. With Paraguay as a blueprint, HIVE aims to prove crypto’s future lies in green grids and AI synergy. “The energy transition starts here,” he declares.
Frank Holmes will elaborate on these strategies at the Consensus festival in Toronto, May 14-16. As Paraguay’s dams hum with activity, the world watches whether this blend of crypto and clean energy can power a new era.
