HIVE Digital Technologies (Nasdaq: HIVE) is expanding into Paraguay through a strategic joint venture with the country's leading telecommunications operator.
Founded in 2017, HIVE is a San Antonio, Texas-headquartered digital infrastructure company that mines cryptocurrencies.
It runs blockchain and artificial intelligence (AI) data centers across Canada, Sweden, and Paraguay and serves both Bitcoin (BTC) and high-performance computing (HPC) clients.
Related: HIVE launches documentary on Paraguay's hydro-powered Bitcoin mega-mine
HIVE to launch AI BUZZ cloud platform in Paraguay
HIVE announced on Jan. 13 that it is launching one of the first purpose-built AI BUZZ Cloud platforms in Paraguay.
The platform is built to deliver HPC and AI infrastructure to serve academic and research institutions, enterprises, financial and healthcare firms across Paraguay and the broader South American region.
Located in Asunción, the platform will be hosted within a Tier III data center operated by the leading telecom provider in Paraguay.
HIVE already has a digital infrastructure presence, including Tier I data centers and Bitcoin mining operations, in Paraguay, which the company will leverage for the latest expansion drive.
Related: What is Bitcoin mining? Explained
Bitcoin mining is the process of validating and adding transactions to a blockchain by solving cryptographic problems called hashes in return for rewards in the form of newly minted BTC.
HIVE Digital said it views Bitcoin mining as a means of building Tier I data center infrastructure and substations that monetize surplus or stranded electricity.
Each Bitcoin, therefore, represents a bundle of energy, the company said, and highlighted the view is articulated by tech tycoons like Elon Musk and Jensen Huang.
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Paraguay important 'operating geography' for HIVE
HIVE said its Paraguay strategy is rooted in a long-term, multi-year vision to turn energy-led digital infrastructure into scalable AI and data center capacity.
The company attributed its long-term investment in Paraguay to the country's economic performance, energy profile, and pro-investment policy.
HIVE expects continued investment in AI and HPC infrastructure to support downstream economic activity, such as a potential rise in the demand for software developers, computer engineers, data scientists, electrical engineers, etc.
The digital infrastructure in Texas evolved from energy-intensive Tier-I facilities into capital-intensive Tier III facilities to support advanced enterprise and AI workloads, HIVE said.
It believes Paraguay may be at a similar early-stage point in the infrastructure development cycle, it added.
The development follows U.S. Secretary of State Marco Rubio and Paraguayan Foreign Minister Rubén Ramírez Lezcano signing a Status of Forces Agreement (SOFA) between the two countries on Dec. 15, 2025.
The agreement brings the U.S. and Paraguay together on policy areas such as security, stability, and law enforcement, the statement added.
HIVE executive chairman Frank Holmes said, "Paraguay has been an important operating geography for HIVE, where we have demonstrated how energy-led digital infrastructure can support long-term value creation."
"We believe Paraguay's economic stability, supportive policy environment, and institutional relationships provide a constructive foundation for continued digital infrastructure development."
HIVE president and CEO Aydin Kilic said, "This initiative complements HIVE's existing Tier I data center operations in Paraguay, which currently utilize approximately 300 megawatts, and which, subject to market conditions and approvals, may expand by an additional 100 megawatts in 2026."
Following the announcement, the HIVE stock jumped more than 7.5% to trade at $3.5 at the time of writing.
Related: Elon Musk predicts energy-based Bitcoin to replace money
This story was originally published by TheStreet on Jan 13, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
