Bitcoin (BTC) mining companies are eyeing a US return

Several crypto-focused organizations — including Bitcoin (BTC) mining companies — are eyeing a US return, driven by uncertain geopolitical tensions and a potential tariff on China-mined ASICs.

Still, BTC miner Hive Digital Technologies (NASDAQ: HIVE) is doubling down on the untapped potential of the Latin American (LATAM) market.

In an exclusive interview with Cointelegraph, Hive's president and CEO Aydin Kilic said that Paraguay presents a long-term opportunity with "geopolitical stability, low-cost hydro energy, and a government open to foreign investment".

Picking up from where Bitfarms left off

Hive acquired Bitfarms' 200 megawatt (MW) Yguazú facility for $56 million in January. Phase one infrastructure of a 100 MW data center at the site was completed in April, supporting five exahashes per second (EH/s) of application-specific integrated circuit (ASIC) mining.

Hive plans to expand to 300 MW of mining facilities in Paraguay in 2025. It aims to increase its hashrate to 25 EH/s by September.

The CEO said Hive has spent over a year building strong, cooperative relationships with local stakeholders in Paraguay.

"We are investing in local hiring, training programs and strong vendor partnerships. Our goal is to create a local ecosystem of support that keeps costs stable while boosting uptime and efficiency," he added.

While there was a proposed ban on crypto mining in Paraguay due to the pressure it poses on the country's electricity supply and potential rising electricity prices, Aydin said that their team is actively involved with policymakers to support clarity and cooperation in mining legislation.

Hive embraces global diversification to hedge against geopolitical risks

Hive has data centers in Canada, Sweden and Paraguay. Contrasting with its ongoing LATAM expansion, the miner is relocating its headquarters to San Antonio, Texas.

"Our growing presence in North and South America creates a balanced footprint resilient to geopolitical or trade policy shocks," Kilic said.

The US tariff on China raised concerns about the rising cost of mining equipment, like ASICs. Kilic said they have diversified sourcing channels for ASICs and electrical components to avoid single-region dependencies.

To ensure scaling from six to 25 EH/s, the CEO said the company has locked in key ASIC orders, secured power access through long-term power purchase agreements, and expanded engineering capacity across three continents to deal with market and technological uncertainties.

Profitability in Bitcoin mining is ultimately a physics equation

Kilic sees Bitcoin mining profit as a physics equation. He said capital and operational expenses depend on hashrate-sensitive analysis to seek the most accretive way to fund their business through BTC treasury and ATM sales.

While the solo mining community may have more difficulty making profits, the CEO suggested the focus should be on the variables it can control:

"Whether you run one rig or ten thousand, it comes down to controlling inputs like opex, power costs, and machine uptime to drive predictable outputs — maximizing energy efficiency, minimizing downtime and being disciplined with treasury management."