Frank Holmes, co-founder of Hive Digital, said this week that several licensed countries are actively mining Bitcoin (BTC) in secret and are turning their eyes to crypto as an alternative revenue stream in the face of US financial restrictions.
Holmes made his claim in a recent interview with Roundtable. He recently led to a military strike targeting Iran’s electricity infrastructure reduced the difficulty of mining worldwide, suggesting that the country’s military is using energy resources to mine Bitcoin and generate hard currency.
The comments reflect a wider trend that governments have been blocked from the traditional financial system, leveraging crypto mining to fill economic gaps.
Holmes said this is not limited to Iran, and other countries facing US sanctions have also participated in similar projects, many of which remain private.
He further argued that Bitcoin has become a strategic asset, especially for countries that struggle to access the dollar. Mining offers a direct route to accumulating value outside the traditional financial ecosystem.
Holmes said network-level data, such as hashrate fluctuations, allowed us to observe disruptions at mining facilities.
High Bramp Up Production
While using Crypto Mining as a financial lifeline to point to US enemies, Hive Digital is pursuing growth in the US side of the country.
The company recently expanded its footprint in Paraguay, acquiring its infrastructure to expand its operations more quickly. The decision required the sale of a portion of Bitcoin Holdings, which Holmes described as a strategic trade-off to accelerate production.
Paraguay’s supportive regulatory stance and energy resources have become a key place for Hive’s expansion, especially compared to more politically unstable countries in the region.
The move comes amid growing sentiment that Bitcoin mining will continue to flourish in jurisdictions that are consistent with US economic interests, particularly under the current administration.
Hive has surpassed 14 exahashes per second (EH/S) of mining capabilities (at targets to reach 25 EH/s by the end of November. On current output, the company generates around $315 million in annual revenue, placing it among the best candidates in terms of efficiency and size.
The statement highlights the changing circumstances in which mining activities are increasingly intertwined with profitability as well as global partnerships, sanctions avoidance and power projections through digital infrastructure.