1. With Bitcoin holding above $100K, how has HIVE’s BTC-backed development technique—notably utilizing BTC in your steadiness sheet for ASIC orders—helped you scale with out taking up debt?
At HIVE, we’ve at all times believed that Bitcoin isn’t only a commodity, however a strategic asset. Our hybrid technique displays that perception. We’ve traditionally retained a good portion of the Bitcoin we mine, positioning ourselves to profit from long-term worth appreciation.
On the similar time, we perceive the significance of considerate, strategic development. Our current enlargement in Paraguay is an ideal instance of this steadiness. By leveraging a portion of our Bitcoin holdings to fund this initiative, with the strategic choice to repurchase the BTC at a worth decrease than at the moment’s market worth, we’ve been capable of scale meaningfully with out assuming debt.
This disciplined, Bitcoin-backed development technique is enabling us to triple our international working footprint by this summer season, all whereas sustaining upside publicity to Bitcoin and avoiding debt. It’s a mannequin we consider units HIVE aside, demonstrating how digital property can be utilized not solely to protect worth, but in addition to drive sustainable, capital-efficient enlargement.
2. You’ve structured ASIC purchases with a repurchase choice. Are you able to clarify how this works and the way it offers HIVE a strategic benefit in managing volatility?
We strategically used our Bitcoin HODL as a pledge at $87,000, which implies we will purchase again the Bitcoin at this worth anytime this yr. With Bitcoin buying and selling within the $105,000 vary, this implies an instantaneous revenue (if exercised) of roughly $20,000 per Bitcoin. Or, if we need to get our Bitcoin HODL again to over 2,000, we will achieve this, which we wish to do, shopping for again these Bitcoin at $87,000. That is an accretive technique as a result of we will use cashflow from operations (which will increase month-to-month now as our hashrate grows from 10 EHs to 18 EH after which 25 EHs), to purchase again Bitcoin at these costs. Or, as our inventory worth rallies as HIVE is re-rated in a number of above $500m market cap and $1 billion market cap, the price of capital from our fairness goes down considerably, so we will use our fairness at a a lot greater valuation to purchase again Bitcoin at this engaging worth!
3. Given HIVE’s forecasted potential of producing ~$1 million in BTC income per day at 18 EH/s, what’s your margin goal per BTC mined— and the way sustainable is that if Bitcoin drops beneath $100K once more?
Sustainability by all market cycles is a core a part of our technique. As soon as our 25 EH/s is deployed we could have a worldwide fleet effectivity of 17.5 J/TH. This implies at a Bitcoin worth of $120K, our gross mining margin is roughly 60%. Moreover, HIVE’s breakeven hash worth is close to $20 per PH per day, what this implies is, at present problem ranges, Bitcoin might drop to as little as $50,000 and HIVE can proceed to mine profitably. We function with one of many leanest groups within the {industry}, keep the bottom G&A bills amongst our friends, and are extremely disciplined with capital allocation. This effectivity retains our value construction aggressive, permitting us to stay worthwhile even when Bitcoin dips. We haven’t seen hashprice dip a lot beneath $40 on this halving cycle, so we count on it is going to be after the 2028 halving earlier than we will see $20 HP, and HIVE is positioned to mine profitability by to then with its present fleet!
4. HIVE simply handed 8.3 EH/s and is on observe to triple that by This autumn 2025. What key infrastructure or logistics challenges are you dealing with as you purpose to hit 25 EH/s?
HIVE has made sturdy progress, finishing and energizing the primary 100 MW section at our Yguazú web site with a mixture of proprietary BUZZ Miners and Bitmain S21+ air-cooled items. Part 2 is effectively underway, with over 13,400 items already shipped, and the complete section will add 6.5 EH/s, bringing us to 18 EH/s.
Subsequent, we’re getting ready our Valenzuela web site for one more 100 MW of air-cooled infrastructure, with deployment ramping up from August by November. This positions us to exceed 25 EH/s and rank among the many prime international Bitcoin miners.
Whereas we’re on observe, we stay cautious. Ongoing international provide chain points and tariff-related commerce tensions might current delays. Our workforce is actively managing these dangers to make sure we keep forward of our deployment schedule.
5. Why is Paraguay a focus in your enlargement, and the way does that geography show you how to obtain the effectivity and scale you’re concentrating on?
Paraguay presents a uncommon mixture of benefits that align completely with HIVE’s technique. It gives entry to plentiful, inexperienced, and low-cost hydroelectric energy from the Itaipú Dam, the most important within the Western Hemisphere. The nation is politically secure, has a surplus of unpolluted vitality, and advantages from constant USD-denominated revenues, which helps financial reliability.
We’ve established sturdy relationships on the highest ranges of presidency, together with direct engagement with the President, making certain long-term alignment and infrastructure assist. This atmosphere permits us to scale effectively whereas advancing our dedication to sustainable, cost-effective Bitcoin mining.
6. With 100 MW stay and 200 MW extra in improvement, how are you making certain dependable uptime and efficiency throughout your hydro-powered knowledge facilities in South America?
HIVE has at all times prioritized operational excellence and industry-leading uptime throughout all our international websites, and our enlargement in Paraguay isn’t any exception. To guide our efforts on the bottom, we’ve appointed Gabriel Lamas as President of Paraguay Operations.
Gabriel is a seasoned electrical engineer with over 20 years of expertise in large-scale vitality and infrastructure tasks throughout Latin America. His management has formed each the digital and vitality landscapes within the area, together with key roles at Bitfarms and Paraguay’s nationwide utility, ANDE.
Below his steerage, we’re constructing world-class, hydro-powered knowledge facilities with a robust give attention to reliability, grid integration, and efficiency. His deep technical information and confirmed observe file in vitality optimization guarantee we keep HIVE’s excessive requirements as we scale in South America.
7. You’re positioning HIVE as a worldwide chief in sustainable hashrate. How do you quantify and talk the environmental affect of your operations to stakeholders and regulators?
At HIVE, sustainability isn’t only a worth. It’s built-in into how we function. In Canada, we recycle warmth from our knowledge middle in Lachute to energy a 200,000 sq. foot manufacturing facility, saving our associate a whole bunch of hundreds of {dollars} yearly in heating prices. It’s a transparent instance of how mining infrastructure can serve broader industrial ecosystems.
In Paraguay, we’re extending that mindset to neighborhood affect. After assembly with the governor of Cordillera, we dedicated to electrifying 18 rural colleges that at present haven’t any entry to energy. This sort of native engagement displays our perception in doing enterprise the proper method by creating worth not just for shareholders but in addition for the communities the place we function.
We talk these efforts transparently with stakeholders and direct dialogue with regulators, exhibiting that high-performance mining could be each environment friendly and accountable.
8. Are there plans to use your hydro-powered mannequin in different geographies— and even associate with governments seeking to monetize surplus renewable vitality by Bitcoin mining?
Our quick focus is executing our roadmap to 25 EH/s by the top of the yr. That mentioned, we see important potential in partnering with governments and utilities around the globe to assist monetize surplus renewable vitality by sustainable Bitcoin mining.
We’ve confirmed that our hydro-powered mannequin works, and we’re open to increasing it the place it aligns with our values and strategic targets. So to that, I’d merely say: keep tuned.
9. Do you see clean-powered mining as turning into the {industry} customary— or will it stay a aggressive edge for HIVE as different miners battle with excessive vitality prices and debt?
Sustainable mining has been core to HIVE’s ethos since day one. It drives how and the place we develop, pushing us to be extremely selective in selecting places with entry to wash, low-cost vitality.
Whether or not it turns into the {industry} customary stays to be seen, however for now, it continues to be a transparent aggressive benefit. As many miners face rising vitality prices and debt burdens, our early dedication to inexperienced energy offers us operational stability and value effectivity that others at the moment are racing to copy.
10. What’s your outlook for Bitcoin mining margins over the subsequent 12–18 months— particularly with upcoming halvings, vitality worth fluctuations, and potential ETF-driven worth volatility?
We consider the true bull marketplace for miners hasn’t arrived but. A sustained hash worth within the $80 to $120 per petahash per day vary would mirror actual power. We’re at present round $55, so there’s significant upside potential.
Our focus stays on operational excellence and value self-discipline. With vitality volatility and macro uncertainty, staying lean and environment friendly is extra vital than ever. As we scale to 25 EH/s, our purpose is to rebuild our HODL to over 2,000 Bitcoin. That long-term publicity, paired with low-cost, clear vitality operations, positions HIVE to thrive throughout all market circumstances.