HIVE Digital Technologies Expands with Strategic Investment in Paraguay

HIVE's New Investment in Paraguay

HIVE Digital Technologies Ltd. has initiated a strategic move by announcing a 100-megawatt digital asset mining operation in Paraguay. This development is set through definitive agreements, including a share purchase agreement and a construction agreement. The operation will leverage green energy sourced from the Itaipu hydroelectric dam.

Importance of Stable Fiscal Policies

HIVE’s leadership emphasizes the critical role of stable fiscal policies in attracting foreign direct investment. The proposed 14% energy tariff increase in Paraguay poses significant challenges, impacting HIVE's long-term investment strategies. HIVE is actively discussing these concerns with the Paraguayan government to ensure stable costs and reliable agreement durations, which are essential for attracting public funds.

Economic Impact and Infrastructure Development

The 100 MW project represents a substantial investment in Paraguay's economy, providing over $100 million in stable U.S. dollar income over three years. This initiative supports local job creation and infrastructure development, with the construction phase expected to employ around 80 workers. The investment is vital for converting high-voltage electricity into usable power, enhancing local economic growth.

Global Investment Strategy

HIVE’s decision aligns with a broader strategy of sustainable investment and community engagement. The company has successfully implemented a similar approach in Sweden and Canada, based on a transparent 'Return on Invested Capital' model. The recent reassessment of investments by other public Bitcoin mining companies underscores the need for stable governmental policies to attract and maintain foreign capital.

Conclusion

HIVE Digital Technologies remains committed to contributing to Paraguay's economic growth through strategic investments. By fostering a favorable business environment, HIVE aims to support regional development and provide meaningful employment opportunities, ultimately enhancing Paraguay's economic stability and growth.