HIVE Digital Technologies Ltd. (NASDAQ: HIVE), a publicly traded Wall Street bitcoin miner, is significantly expanding its mining capacity through a major order of next-generation mining machines and the development of a new mining facility in Paraguay. This move is part of HIVE’s strategy to boost operational capacity amidst rising hashrate and increasing BTC mining difficulty.
HIVE Digital Expands Bitcoin Mining with Major ASIC Order
The Vancouver-based crypto mining company announced its purchase of 6,500 Canaan Avalon A1566 ASIC miners, with an initial deployment of 500 units scheduled for this week. The remaining 6,000 units will be delivered in monthly installments from December 2024 through March 2025.
“We greatly appreciate HIVE for choosing Canaan’s mining solutions for its operations,” said Canaan Chairman and CEO Nangeng Zhang. “Securing such a major order is always rewarding, but it’s especially meaningful when it comes from a longstanding customer and bitcoin mining pioneer like HIVE.”
The new Avalon A1566 miners, operating at 185 TH/s with an efficiency of 16.5 J/TH, represent a substantial upgrade for HIVE, expected to boost the company’s overall mining capacity to 6 EH/s by March 2025 while improving fleet efficiency from 22.3 J/TH to 20.5 J/TH.
“Our disciplined capital management allows us to seize ASIC upgrade opportunities, enhance efficiency, and strengthen our bitcoin HODL position,” commented HIVE Executive Chairman Frank Holmes.
HIVE Breaks Ground on 100MW Green Mining Facility in Paraguay
In addition, HIVE has broken ground on a 100-megawatt facility in Paraguay. The company plans to bring 30 MW online by the beginning of Q2 2025, supporting approximately 2 EH/s of mining capacity. Full completion of the facility is scheduled for Q3 2025, potentially raising HIVE’s total hashrate to 12.5 EH/s.
“With the construction of our 100MW green-powered facility in Paraguay, we are using operational cash flow to support growth and enhance our position as both a bitcoin proxy and operational business. HIVE is committed to incremental investments that increase shareholder value and cash flow,” Holmes added.
HIVE Digital Revenues Up 37%
HIVE Digital Technologies is taking significant steps to increase revenue. The company plans to build a new hydro-powered data center, which could potentially double its revenues. Additionally, HIVE is expanding into artificial intelligence (AI) by offering high-performance computing (HPC) services.
In Q2 2024, HIVE reported total revenues of $32.2 million, with $29.6 million from digital currency mining and $2.6 million from HPC operations. The company achieved an adjusted EBITDA of $14.9 million and a pre-tax net income of $4.2 million.
Impact of Halving on Mining Production
The April 2024 bitcoin halving, which reduced mining rewards by half, affected production across the industry. During this quarter, HIVE mined 449 bitcoins, a decline from 658 bitcoins in the previous quarter. By comparison, competitor Riot Platforms mined 370 bitcoins in July alone.

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What are the real costs of mining one bitcoin? A new report from Coinshares reveals some interesting insights, highlighting the increasing difficulty of mining and its potential impact on miners.
Halving and Increasing Mining Difficulty
Bitcoin halving events regularly bring significant changes, and this year is especially notable due to a dramatic rise in mining difficulty. This can reduce profitability, causing many miners to shut down operations due to unbalanced costs and revenue.
As mining difficulty increases, so do production costs. Coinshares estimates that the current cost of mining one bitcoin is now $49,500, making it increasingly inaccessible for smaller miners. This trend could lead to more centralized mining, as only large institutions may be able to keep up with rising costs.

Declining Miner Reserves: A Sign of Uncertainty
Bitcoin miner reserves have an interesting relationship with BTC’s price and overall market sentiment. Miner reserves tend to grow when miners expect price increases and fall when market confidence drops.
October was a bullish month for bitcoin, which led to a rise in miner reserves, reaching a four-week high of 1.815 million BTC on October 26. Since then, however, reserves have declined to 1.811 million BTC. This difference amounts to around 40,000 BTC, equivalent to approximately $2.6 million in today’s market value. Changes in miner reserves thus have a significant impact on BTC price action.

The main reason for the drop in reserves has been growing uncertainty surrounding the upcoming U.S. elections. Miners have been willing to hold onto their bitcoins, anticipating higher prices.
Can Bitcoin Return to the $60,000 Range?
Recently, it seemed like bitcoin was heading for new price highs. However, growing uncertainty has brought prices down. At the time of writing, BTC’s price has fallen to $67,208.
Bitcoin has been in the red for six consecutive days, reflecting high selling pressure. Continued uncertainty could lead to further declines. Fibonacci retracement indicates that BTC’s price could bottom out between $60,500 and $63,100 in the current trend.

This forecast is based on BTC’s lowest price in September, which kicked off the latest upward trend, and the recent peak at the end of October. The current BTC price at the time of writing is $67,829, marking a 6.92% drop from the Fibonacci accumulation range.

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Bitcoin mining generates bitcoins and verifies and adds transactions to the blockchain. Miners race to solve complex mathematical puzzles using powerful computers. This procedure generates bitcoins and secures the Bitcoin network and system.
Bitcoin mining uses powerful computers to solve complex arithmetic problems. These puzzles are designed to be difficult and time-consuming, requiring lots of calculation. The first miner to solve the puzzle receives fresh bitcoins. This mechanism creates bitcoins, verifies and adds transactions to the blockchain, securing the Bitcoin network.
Bitcoin mining is important for investors because of profit. Miners might keep onto newly minted bitcoins as investments, expecting them to appreciate. Miners also receive transaction fees for verifying and adding transactions to the blockchain. Miners can increase their revenue and profitability as Bitcoin investors.
Basics of Bitcoin Mining
Blockchain technology is explained in Bitcoin mining basics. The decentralized blockchain records all Bitcoin transactions. Miners perform complicated mathematical problems and validate transactions to maintain it. Network security and integrity are ensured. Mining competitions award the first miner to solve these issues with fresh bitcoins. Bitcoin mining validates and adds transactions to the blockchain.
Bitcoin mining uses the proof-of-work consensus algorithm. Miners must use a lot of computer power to solve math problems. This prevents fraudulent transactions and ensures that most of the network approves each transaction. The proof-of-work method prevents hostile actors from controlling the blockchain and strengthens its security and trustworthiness by making these challenges difficult and energy-intensive to answer.
Miners need specific hardware and software to mine Bitcoin. Mining hardware like ASICs (Application-Specific Integrated Circuits) performs sophisticated proof-of-work algorithm calculations rapidly and efficiently. Miners also use mining software to connect to the Bitcoin network, join mining pools, and control the mining operation. This gear and software allow miners to compete to solve mathematical riddles and secure the Bitcoin network.
Mining Process
Miners install mining software on their PCs to start mining. This software lets them communicate with other miners on the Bitcoin network. Miners join mining pools to improve their chances of solving mathematical challenges and collecting Bitcoin incentives. The mining program then employs miners' ASICs to perform sophisticated proof-of-work algorithm calculations. Miners race to solve the riddle by hashing different combinations until one discovers it. The miner broadcasts a solution to the network, and other miners verify it. If correct, the miner receives fresh Bitcoins.
Mining is essential for confirming and adding transactions to the blockchain. Miners collect and verify new transactions broadcast to the network. A block is then added to the blockchain. Miners verify transactions and prevent double-spending to protect the network. This consensus-based, decentralized strategy ensures Bitcoin ecosystem transparency and confidence.
Mining difficulty is the computing effort required to mine a blockchain block. To ensure that fresh blocks are added every 10 minutes, the difficulty is modified constantly. Mining new blocks becomes tougher as more miners join the network.
Miners receive block rewards for mining a new block. These payouts are usually new bitcoins to compensate for the computational resources and energy used during mining. Transaction fees from the block are included in the block reward. This compensation structure motivates miners to secure and validate transactions.
Costs and Profitability
Mining becomes harder, requiring more computer power and energy, raising expenses. Miners must carefully analyze their costs and guarantee that the rewards outweigh them. Since bitcoin incentives vary in value, Bitcoin price changes can also affect profitability. Thus, miners must continually assess market conditions and make strategic decisions to maximize profits in this competitive industry.
The profitability of mining activities depends on Bitcoin price and difficulty. A higher Bitcoin price means higher revenues for miners, which affects reward value. However, mining difficulty is the complexity of solving mathematical riddles to mine new blocks, which makes it harder and more resource-intensive for miners. To make smart judgments and stay competitive, miners must monitor and understand these aspects.
Miners must learn mining calculators to estimate returns. These calculators estimate revenues based on Bitcoin price, mining difficulty, electricity costs, and hardware prices. Miners may evaluate their operations, choose the best mining approach, and detect market risks and opportunities using these calculators. This informs their investment decisions and helps them compete in the mining business.
Risks and Challenges
The volatility and uncertainty in the Bitcoin market present significant risks and challenges for miners. The price of Bitcoin can fluctuate dramatically within a short period, making it difficult to predict future profits accurately. Additionally, the mining difficulty can increase rapidly, reducing the profitability of mining operations. The uncertain regulatory landscape and potential for technological advancements also add to the challenges faced by miners. Therefore, staying updated on market trends and having a flexible mining strategy is crucial to navigate these risks and challenges effectively.
Investing in mining operations comes with its fair share of risks and challenges. One major concern is the uncertain regulatory landscape surrounding cryptocurrencies. Governments around the world are still grappling with how to regulate this industry, which can result in sudden policy changes that impact mining operations. Additionally, the rise in competition within the mining community can make it harder to maintain profitability. As more miners enter the market, the mining difficulty increases, reducing the chances of successfully mining new blocks and earning rewards. These factors emphasize the importance of thoroughly understanding and monitoring market trends to make informed investment decisions in the mining sector.
Ways to mitigate risks and maximize profitability in the mining sector include staying updated on regulatory changes and adapting operations accordingly. By closely monitoring policy developments, mining companies can proactively adjust their strategies to comply with new regulations and minimize disruptions. Additionally, staying ahead of the competition requires continuously investing in advanced mining equipment and optimizing operational efficiency. Regular market analysis and forecasting can help identify potential shifts in mining difficulty, allowing miners to adjust their operations and maintain profitability in the face of increasing competition.
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