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Paraguay has a peculiar energy problem. The country co-owns one of the biggest hydroelectric dams on the planet but only uses about 20% of its share of the output. For decades, the surplus got sold to Brazil at bargain rates. Now, Bitcoin miners have figured out that cheap, abundant, renewable electricity is basically a cheat code for their business.
HIVE Digital Technologies completed Phase 2 of its Yguazú mining facility in Valenzuela, Paraguay, in September 2025, bringing the operation to its full 200 megawatt capacity. The site now mines more than 8 Bitcoin daily, and HIVE’s global hashrate has surpassed 18 EH/s. That makes Yguazú the company’s largest facility and one of the most significant Bitcoin mining operations in all of Latin America.
Why Paraguay, and why this dam
The Itaipú Dam, straddling the border between Paraguay and Brazil, has an installed capacity of 14 GW. Paraguay’s domestic electricity demand doesn’t come close to consuming its half of that output.
Power costs for mining in Paraguay have risen from around $0.03 per kWh historically, but they remain competitive compared to most other mining jurisdictions globally.
HIVE acquired the Yguazú site from Bitfarms in January 2025 for approximately $56 million. At the time, it was a bet on Paraguay’s energy surplus and the assumption that the facility could scale up quickly. That bet appears to have paid off, with Phase 2 completed on schedule and Phase 3 expansion already in the works.
The scale of the operation
Paraguay’s Bitcoin mining sector as a whole has been growing rapidly. The country accounted for roughly 4.3% of the global hashrate as of mid-2026, a notable share for a nation of about 7 million people.
Regulatory clouds on the horizon
Not everything is smooth sailing in Paraguay’s mining landscape. The country has been grappling with a surge of unauthorized mining operations, some of which have tapped into the power grid illegally. That’s created headaches for regulators and legitimate operators alike.
Paraguayan authorities have been stepping up enforcement against illegal miners, and there’s growing political pressure to raise power tariffs for crypto operations.
What this means for investors
The $56 million acquisition price for the site looks increasingly reasonable given the daily output. Investors evaluating HIVE should pay close attention to Phase 3 expansion details and, critically, to any changes in Paraguayan energy policy that could alter the cost structure.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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