Hive Digital buys 6,500 ASICs, starts Paraguay construction

As a seasoned analyst with over two decades of experience under my belt, I find myself impressed and intrigued by Hive Digital’s strategic moves. Having witnessed the evolution of cryptocurrency miners since their inception, it’s refreshing to see a company like Hive Digital adapt to market changes while maintaining its commitment to transparency and ESG principles.


Hive Digital, a Bitcoin mining company listed on the Nasdaq, is enhancing its operations by building new facilities in Paraguay, marking its entry into its fourth country of operation. The Canadian miner has procured 6,500 Canaan Avalon A1566 application-specific integrated circuits (ASICs), with deliveries scheduled from December 2024 to March 2025.

Hive Digital revs up

In my role as an analyst, I’m sharing some exciting news about Hive Digital. During the second week of November, we received our initial shipment consisting of 500 new ASICs. This is just the beginning, as we anticipate four additional deliveries by the first quarter of 2025.

Approximately following the arrival of the ASICs shipment, it’s anticipated that a mining capacity of 30 MW will be activated in Paraguay during the second quarter, raising Hive Digital’s hash rate to approximately 8 Exahash per second (EH/s). The introduction of these new ASICs is expected to enhance Hive Digital’s efficiency, lowering their energy consumption per terahash from the current 22.3 Joules per terahash (J/th) to around 20.5 J/th. In a statement, Canaan’s chairman and CEO, Nangeng Zhang, mentioned this development.

HIVE has been able to maximize the utilization rate of its mining sites, resulting in some of the highest Bitcoin production per active hashrate in the industry.”

In his statement, Zhang emphasized that HIVE is a crucial ally, particularly because they prioritize business transparency and adhere firmly to Environmental, Social, and Governance (ESG) guidelines. Earlier this month, Canaan finalized the sale of 3,800 Avalon A1566I Immersion Cooling Miners to CleanSpark, a miner known for its mining activities.

Hive Digital changes with the times

Back in July, Hive Digital unveiled plans to establish a new facility in Paraguay. Once constructed, this site is expected to generate a power output of 100 Megawatts. Upon completion, Hive Digital’s computing capacity will reach 12.5 Exahash per second (EH/s), and the fleet efficiency will be set at an impressive 17.6 Joules per terahash (J/th).

Hive Digital buys 6,500 ASICs, starts Paraguay construction

Beyond Paraguay, Hive Digital also operates facilities in Canada boasting more than 100 Megawatts of power, as well as in Sweden and Iceland, where they collectively possess 46 Megawatts.

After the Ethereum Merger, Hive Digital revised its business strategy since the blockchain shifted from a proof-of-work model, which Hive had previously participated in, to a proof-of-stake system. In response, Hive Digital started using Nvidia graphic processing units (GPUs) for artificial intelligence applications instead. Currently, they run approximately 38,000 of these Nvidia GPUs.

 

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2024-11-11 21:18