- Shares of HIVE Digital surged more than 25% following a strong September production report.
- The company mined 267 BTC, an 8% increase compared with the prior month.
- Year-over-year production rose a massive 138%.
In a striking demonstration of operational strength and rapid expansion, Canadian bitcoin miner HIVE Digital Technologies announced a significant and surprising jump in bitcoin production, sending its share price up by more than 25%.
The results underscore the success of the company’s aggressive growth strategy, particularly the large new facility it commissioned in South America.
The market reacted quickly and decisively. Following the announcement, HIVE shares jumped over 25% and closed at $5.57 on October 6.
This increase was a direct response to a standout September production report showing the company mined 267 BTC — an 8% month-over-month gain and an impressive 138% year-over-year increase.
Paraguay power boost
The primary driver of this explosive growth is HIVE’s Phase 3 Valenzuela facility, a 100 MW site in Paraguay.
HIVE confirmed the plant, powered entirely by renewable hydroelectric energy, came online ahead of schedule.
Nearly half of the site’s total hashrate capacity is now operational, a major milestone that immediately translated into higher daily production, which now averages more than 9 BTC per day.
This rapid ramp-up had a dramatic effect on the company’s overall operating capacity.
HIVE’s average hashrate — the computing power used to mine bitcoin — rose 19% from August to September, signaling the immediate impact of the new facility.
Outpacing the network: a story of growing efficiency
This performance is not only about raw capacity; it is also a story of notable efficiency gains.
During the same period that HIVE’s own hashrate increased by 19%, the bitcoin network’s mining difficulty — a measure of how hard it is to mine a new block — rose by 16%.
HIVE’s ability to grow its hashrate faster than the network’s difficulty is an important indicator that the company is operating with improving efficiency, a crucial factor for miner profitability over the long term.
A look toward a higher-performing future
Company leadership made clear this development is only the beginning.
Executive Chairman Frank Holmes praised the Paraguayan team for bringing Phase 3 online ahead of schedule, a sentiment reflected in the company’s ambitious outlook.
President and CEO Aydin Kilic reiterated HIVE’s expectation to reach a total hashrate of 25 EH/s by the U.S. Thanksgiving holiday, a significant increase from the current peak of 21.7 EH/s.
He also highlighted an anticipated fleet efficiency of 17.5 joules per terahash, an important metric in the competitive mining market.
With the necessary ASIC mining rigs already secured for the Paraguay expansion, the path to this next stage of growth appears clear.
HIVE’s Paraguay strategy is paying off, and investors have taken notice.