Bitcoin Miner Hive Digital to Buy Paraguay Site From Bitfarms for $85M
Hive Digital, a bitcoin miner formerly known as Layer1 Technologies, has agreed to buy a Paraguay site from Bitfarms for $85 million, according to an announcement on Wednesday.
The site, located in Asuncion, is said to have 105 megawatts (MW) of capacity and is currently under construction. It is expected to go online in the second quarter of 2023.
The acquisition will give Hive Digital a significant boost in its operations. The company currently has 1.2 exahashes per second (EH/s) of hashrate, which is the measure of computing power used to mine bitcoin. The Paraguay site will add another 1.0 EH/s to Hive Digital's hashrate, bringing its total to 2.2 EH/s.
The purchase price of $85 million represents a significant premium to the market price of Bitfarms' shares. Bitfarms' stock price has fallen by more than 80% in the past year, as the price of bitcoin has plunged.
The sale of the Paraguay site is part of Bitfarms' efforts to raise capital and reduce its debt. The company has been struggling financially in recent months, and has been selling off assets to stay afloat.
Hive Digital, on the other hand, has been expanding rapidly in recent months. The company has acquired several other mining sites in the United States and Canada, and has also ordered a large number of new mining rigs.
The acquisition of the Paraguay site is a major step for Hive Digital, and it will make the company one of the largest bitcoin miners in the world. The site will also give Hive Digital a foothold in South America, which is a growing market for bitcoin mining.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in cryptocurrency is risky and could lead to the loss of your investment.