Odaily News Bitcoin mining company HIVE Digital announced the completion of a $56 million deal to acquire Canadian mining company Bitfarms' partially completed 200 megawatt (MW) Bitcoin mining farm in Foz do Iguaçu, Paraguay.
HIVE has signed a binding letter of intent with Bitfarms and expects to expand its bitcoin mining capacity to 25 EH/s in September through the acquisition, utilizing low-cost renewable hydroelectric power in Paraguay.
The $56 million acquisition includes an upfront payment of $25 million, which is expected to be paid upon closing in the first quarter, with the remaining $31 million to be paid in six equal installments over the next six months.
The acquired mine will be developed in two phases, with the first phase scheduled for completion on April 1, 2025 and 80% complete. This initial phase includes HIVE's payment of the remaining amount required to complete the power-on, which is expected to add approximately 6 EH/s of Bitcoin mining capacity and will be operational in the second quarter. The second phase is scheduled to be completed on August 31, 2025 and will integrate a water-cooled Bitmain S21+ ASIC to provide an additional 6.5 EH/s. HIVE estimates the cost of completion to be $400,000 per megawatt, funded by existing cash and Bitcoin reserves.