HIVE Digital Technologies (HIVE) is betting big on Bitcoin mining in 2025, with plans to increase its hash rate by over 400% as it expands into Paraguay.

Speaking on TheStreet Roundtable , Frank Holmes, Executive Chairman of HIVE, broke down the ambitious expansion and how the company is tapping into Paraguay’s massive hydroelectric surplus to fuel its growth.

“We’re going to go up above 400%,” Holmes said. “You got to think that we’re going to be having triplets over the next nine months as we build out Paraguay, which has a huge surplus of hydroelectricity.”

HIVE’s expansion into Paraguay is strategic—the country produces more electricity than it consumes thanks to the Itaipu Dam, one of the largest hydroelectric plants in the world. The dam, jointly owned by Brazil and Paraguay, generates excess power that Paraguay must either use or send back to Brazil.

“Paraguay doesn’t use that energy, they have to give it back to Brazil,” Holmes explained. “If they use it, then they get US dollars. We’re actually a great engine for the government because they’re going to get paid US dollars every month for that electricity, and we help build out the infrastructure within the community.”

The hashrate race

Bitcoin mining is all about hash rate—the computational power used to solve complex cryptographic puzzles and secure the network. Holmes compared it to car engines:

“Do you have a four-cylinder engine or do you have an eight? And how many horsepowers do you have?” he said. “We all know that if you have an eight-cylinder engine with 440 horsepower, that’s a powerful piece of machinery. It’s the same thing in mining.”

The key to increasing hash rate? More power and better chips.

“Some cars would give you 20 miles per gallon and others would give you 60 miles per gallon. That’s the same as mining—we’re looking for those chips that are going to give us 25 miles per gallon, so they’re much more energy efficient.”

Why Paraguay?

Cheap, renewable power is the holy grail of Bitcoin mining, and Paraguay has it in abundance. Holmes emphasized that HIVE’s presence will benefit the local economy while making use of energy that would otherwise be wasted.

“The dam is so beautiful, Scott. It’s like five miles long. It’s the biggest in the Western Hemisphere and it’s 50/50 with Brazil,” he said.