Canadian Bitcoin mining company Hive Digital Technologies has revealed that it has bought 13,480 of advanced mining units from Chinese manufacturer Bitmain. Hive’s intention to scale operations, despite increasing industry competitiveness, is underscored by the agreement, which includes an option to buy another 13,480 miners within a year.
The deal, valued at over $60 million, was revealed in a press release by the Nasdaq-listed firm (Nasdaq: HIVE). The cutting edge units that each together have a hash rate capacity of 4.3 exahash per second (EH/s) cost Hive $14 per terahash. Speaking for context, Hive’s purchase provides an extremely powerful push to its computational power, one terahash is a trillion cryptographic calculations per second.
Hive Aims for 2% Bitcoin Network Share with New Mining Units
It marks a strategic move amid a record high of 103.92 trillion in the Bitcoin mining difficulty, a measure of the computational effort that would be eaten away for a miner to find a new block. The global miners are fiercely competing in pushing this number higher, with the current average havinghrate on 730.46 EH/s.
Bitmain’s new S21+ Hydro models, which use liquid cooling tech making them particularly efficient in warmer climates, are now in the hands of Hive’s new mining rigs. Hive will deploy the machines in Paraguay where it has a facility with equipment equipped for such advanced machines. Units are scheduled to be delivered in April and May 2025.
Hive’s executive chairman Frank Holmes expects these units to add about 2% to the total Bitcoin network hashrate. The results of this translate to an expected production of nine Bitcoin per day under current difficulty levels, putting in nearly $1M in revenue per day based on current market price rates.
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The investment was profitable, Hive’s leadership told us. The acquisition was strategic in terms of maximizing shareholder returns, said Aydin Kilic, company’s CEO and president. “We will now be able to lower our Bitcoin mining break even costs and continue to be profitable with the deployment of these 15 J/TH miners in Paraguay,” said Kilic.
S21+ Hydro Units Enable Hive to Maximize Performance in South America
Good hashrate economics of $60 per petahash per day, after deducting the electricity and operational cost, will return the company an ROI in just 10 months. The acquisition will ensure sustainable profitability, said Kilic, adding that he was confident that the firm’s long-term trajectory would continue unabated.
The adoption of efficient technologies by the broader industry drives Hive’s expansion. In addition to improving energy efficiency, liquid cooling in the S21+ Hydro units positions Hive to use the available resources in South America’s hot climate for optimal performance.
Hive’s proactive investment in state of art equipment is a good indicator that as Bitcoin mining becomes more difficult, Hive will remain at the forefront of market position. The company’s strategic decisions are constantly motivated to use latest technology in efficient manner to achieve maximum output and value of its shareholders in fast changing cryptocurrency mining landscape.
Conclusion
The company’s invested strategically in its advanced mining units to further increase its profitability and efficiency. Hive plans to launch the cutting edge equipment in Paraguay by mid 2025, achieving nine Bitcoin a day production, further solidifying their competitive edge in the race to more mining difficulty and furthering the path for sustainable long term growth.
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