Holmes said that despite BTC price fluctuations due to leverage and short-term market contagion, Hive will continue to expand its Bitcoin mining and HPC site in Paraguay.
summary
- Hive plans to increase production from 3 BTC to 10 BTC per day and further expand mining using low-cost Paraguayan hydropower.
- Management views Bitcoin mining and HPC as parallel “twin engines”, using BTC cash flow to fund high-margin computing centers.
- Paraguay's surplus electricity and pro-miner policies provide stable revenue for the utility, and Hive is building some of its most powerful data centers in Paraguay.
Hive Digital Technologies continues to expand its Bitcoin mining operations despite the recent market downturn, according to executive chairman Frank Holmes in an interview with TheStreet Roundtable.
Hive and crypto policy in Paraguay
Mr Holmes blamed the recent price slump on over-leverage in the market and said forced liquidations would create a short-term contagion effect. “It wasn't an actual cash purchase. It was a large amount of leveraged buying. And every time there's a large amount of leveraged buying and somebody gets kicked out, there's an epidemic and you end up collapsing in the short term,” Holmes said.
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Holmes reported that the company has increased its daily Bitcoin (BTC) production from 3 Bitcoins per day to 10 Bitcoins per day, and plans for further expansion. “We were able to more than triple our daily Bitcoin production,” he said.
Several major Bitcoin mining companies, including Bitfarms, MARA, and Hut 8, have announced a shift to high-performance computing centers and HPC operations. The sector sees HPC as a low-risk alternative that can generate higher returns compared to the volatility of Bitcoin mining.
Holmes described the two business lines as complementary rather than competitive. “Our philosophy is to run in parallel. One is not better than the other. You need both. And to build HPC, the quickest way to get your money back is to build a Bitcoin data center,” he said.
The company has identified expansion opportunities in Paraguay and plans to develop power and data center infrastructure. Holmes characterized the country as “the only truly pro-American country in Latin America” and praised the president's policies toward bitcoin miners.
Holmes said Paraguay has historically sold excess electricity to neighboring countries, and Argentina currently has more than $200 million in electricity debt. Bitcoin mining operations make regular monthly payments for this excess energy capacity.
“Bitcoin miners save the day.[Power companies]get paid every month. We not only build substations across the country, we pay them every month,” Holmes said.
Hive Digital Technologies plans to establish a data center in Paraguay that will be one of its most powerful facilities. Mr Holmes said short-term price fluctuations would not change the company's infrastructure development plans. “We believe Bitcoin may collapse in the short term, but that will not hinder our growth,” he said.
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