#What is Paraguay's unique energy challenge?
Paraguay faces an unusual situation within its energy landscape. It is a co-owner of one of the largest hydroelectric dams globally but only utilizes approximately 20% of its share of the energy produced. Historically, the surplus electricity has been sold to Brazil at very low prices. Recently, Bitcoin miners have recognized that Paraguay's access to affordable and plentiful renewable energy presents a significant opportunity for their operations.
In September 2025, HIVE Digital Technologies completed the second phase of its Yguazú mining facility located in Valenzuela, Paraguay, enhancing its total capacity to 200 megawatts. The facility now generates more than eight Bitcoin every day, contributing to HIVE’s global hashrate exceeding 18 EH/s. This positions Yguazú as the largest facility for HIVE and among the key Bitcoin mining operations in Latin America.
#Why is the Itaipú Dam significant?
The Itaipú Dam, which sits along the border of Paraguay and Brazil, boasts an impressive installed capacity of 14 gigawatts. Paraguay's domestic demand does not fully consume even half of this energy, making it an attractive location for energy-intensive operations like Bitcoin mining. While electricity costs for mining in Paraguay rose from a historical low of about $0.03 per kWh, they remain competitively priced compared to other countries.
HIVE acquired the Yguazú facility from Bitfarms for roughly $56 million in January 2025, banking on Paraguay’s energy surplus and the notion that the facility could ramp up operations quickly. This strategic investment appears to be paying off, with the second phase of development concluding as planned and a third phase expansion already underway.
#How is the Bitcoin mining sector in Paraguay evolving?
The Bitcoin mining sector in Paraguay has been expanding rapidly. As of mid-2026, the country accounted for an estimated 4.3% of the global Bitcoin hashrate, which is noteworthy for a nation with a population of about seven million.
However, the industry is not without challenges. An influx of unauthorized mining activities has emerged, with some operators illegally tapping into the power grid. This situation has posed regulatory challenges for both the authorities and legitimate mining operations.
To combat this, Paraguayan officials are increasing their enforcement efforts against illegal mining activities, facing rising political pressure to implement higher tariffs on electricity utilized by crypto operations.
#What should investors consider?
Considering the daily operational output, the $56 million investment for the site seems increasingly justified. Investors interested in HIVE should monitor the progress of its third phase expansion as well as remain vigilant to any developments in Paraguay’s energy policies that might affect costs. This insight is crucial for making informed investment decisions in an evolving market.