Mining companies shift to off-cycle operations: Paraguayan hydropower support, profit first or capacity first?

Question

[Coin World] Listen to the new trends in the industry – HIVE Digital, a digital mining company, has recently adjusted its approach. Executive Chairman Frank Holmes revealed that the company has learned a lesson during the fluctuation of the Bitcoin cycle, and the focus is no longer on chasing trends, but rather on building a robust business that can withstand cycles.

How to do it? They placed their bets on Paraguay. Why? Because there is extremely cheap hydropower there. Everyone understands what low electricity costs mean – the profit margin for mining instantly widens. Based on this advantage, HIVE plans to achieve stable growth and efficient operations by 2026.

Interestingly, Holmes emphasized a hierarchy of priorities: profit margin > capacity expansion. In other words, it's not about who mines more, but about who earns steadily. This approach is indeed different from the previous “crazy expansion” strategy.

In addition, they are also exploring opportunities in AI and high-performance computing. It seems they want to leverage their identity as a digital infrastructure to play in a broader arena. Whether this layout can actually work, let's see how it performs in the future.

LiquidationWizard · Accepted Answer

Paraguay's hydropower is indeed attractive, but the problem is that other mining companies are also eyeing it, making the competition fierce.

Profit prioritization is a good strategy, but I'm worried they might overexpand when the market goes crazy again.

Can they seize the AI computing opportunity? Not very optimistic.

By the way, HIVE's recent shift was probably a lesson learned from a liquidation, haha.

Relying on hydropower to cut costs isn't wrong, but can its sustainability really be guaranteed?

MagicBean · Answer

I am optimistic about the recent operations of Paraguay’s hydroelectric power. Compared to those irrational players still ramping up production capacity, focusing on profit margins is indeed much more sensible. That said, if this can really stabilize, we might be able to cash in on AI Computing Power in 2026, which would be great.

SmartContractPhobia · Answer

The electricity cost in Paraguay is really amazing, now I understand why big Miners are gathering there. However, I find the profit-first logic a bit heart-wrenching – to put it nicely, it’s stable, to put it harshly, the production capacity ceiling is obvious, who would want to be conservative if they can expand?

Mining companies have learned well, they no longer rigidly stick to cycles. Speaking of which, the AI sector is indeed something; if it weren&#39;t for the surge in computing power demand, mining might have already cooled down.

How long this combination can last, we’ll find out in 2026.

GateUser-a5fa8bd0 · Answer

Paraguay&#39;s electricity is really cheap, no wonder everyone is flocking there.

Wow, finally someone has figured it out, Bitcoin is all about cycles, the crazy expansion of production is outdated.

Profit margin comes first... this guy is really awake, unlike some companies that are still desperately piling up production capacity.

Wait, are they also doing AI? Are they trying to transition out of mining?

This idea is actually quite stable; being able to survive long is more important than anything else.

Low hydroelectric costs are a natural advantage, Paraguay has definitely won this round.

Calculating it out, the profit margin line might be more resilient than expanding production.

Stabilizing growth by 2026 is the key; right now, everyone is just bragging.

AlwaysMissingTops · Answer

Ha, here comes the electricity fee trap again. Paraguay&#39;s hydroelectric power is cheap, but can these guys really stabilize and not expand production? I doubt it.

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Profit first sounds good, but I&#39;m afraid they&#39;ll change their tune once the market rises.

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Wait, is this for real? No more chasing production capacity? Then what was all that money spent on those Mining Rigs before? Now they talk about a stable business...

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Paraguay&#39;s electricity costs are indeed ridiculously cheap, but there&#39;s also risk—if the policy changes, it&#39;s gg.

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Stable growth by 2026, and it&#39;s only 2025 now—this plan is too flimsy.

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To put it bluntly, they were scared by the previous cycle, now pretending to be stable. Once coin prices rise again, their true colors will show.

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The AI Computing Power part is the most interesting; it feels like that&#39;s their real trump card.

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I agree with this logic, Mining should focus on ROI, not on how much is mined.

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Cheap electricity + stable operations sounds good, but how about execution? I bet they will still expand production within a year.

RugResistant · Answer

Paraguay&#39;s hydroelectricity strategy is still an old trick, people have been playing with it for a long time. However, prioritizing profit margins is a practical adjustment, more reliable than those who are always boasting about doubling production capacity.

Wait, stable growth by 2026? Can the market wait that long, fren?

Here comes the AI mining story again, can it take off this time? 🤔

HIVE&#39;s shift this time is actually acknowledging defeat; after two years of frantically expanding production, it&#39;s time to pay debts.

It sounds good, but isn’t it really just a forced slowdown after being beaten up by the cycle? Let’s see if it can last until next year.

Low hydroelectric costs guarantee profits? It depends on the coin price; this logic is a bit one-sided.

Finally, some companies are starting to tell the truth; it&#39;s indeed more about who earns steadily rather than who mines more.

Paraguay made a good choice, but what about the political risks? Is anyone mentioning this?

Mining companies shift to off-cycle operations: Paraguayan hydropower support, profit first or capacity first?

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