As Bitcoin mining enters a new chapter after Harving, Hive Digital Technologies is taking a measured, ambitious approach to growth.
In this interview, Hive’s CFO Darcy Daubaras sees internally that while the company plans to scale its hashrate to 25 EH/s by the end of 2025, it is sticking to its denunciation philosophy and focusing on the operational field.
Daubaras explains how Hive balances speed and sustainability.
It is interesting to note that the story of the Hive is not just about mining. The company also moved early on to AI and high-performance cloud services to diversify beyond crypto using green data centers and build long-term resilience. Daubaras explains how this dual focus between Bitcoin (BTC) and computing makes Hive competitive, especially as ESG concerns and energy costs determine who and whoever mining wins and losers.
For investors and industry watchers, it is a rare glimpse of one of the sector’s most advanced companies positioning themselves for the future.
Below is the complete Q&A with Darcy Daubaras.
Crypto.News: Hive is implementing a massive hashrate expansion, achieving its target of 25 EH/s by the second half of 2025. Your goal represents an additional increase in ability by about 2.5 times. What is the biggest execution risk in rapidly expanding this? Also, how do you manage these challenges to meet your 25 EH/S goals within the deadline?
DD: Scaling to EH/s of 25 is an ambitious objective, but we are steadily going well. However, rapid expansion at this scale naturally introduces execution risks, such as global supply chain volatility, hardware logistics, and tight construction timelines.
We actively manage these risks through a combination of disciplined project planning, gradual deployment, and powerful local execution. Partnerships with trusted vendors and local presence at each site provide important visibility and control at every stage of your build-out.
Paraguay, for example, is led by President Gabriel Lamas, a veteran electrical engineer with over 20 years of experience in large-scale infrastructure and energy projects across Latin America. Under his guidance, we are building high-performance hydroelectric data centers designed for long-term reliability, grid efficiency and sustainability. His deep understanding of the energy system means that as we scale in South America, we are growing not only rapidly, but also in accuracy and resilience.
CN: Considering the “no debt” stance, are there any funding challenges to expand the operation? Can we continue to expand Bitcoin Treasury further, raise capital, and continue working towards our goals through operational cash flows, if necessary? Speaking of which, how do you decide when to settle mined BTC and how to keep its use to suit the needs of the company?
DD: Using Bitcoin from our Treasury to fund growth gives you flexibility without having to worry about debt. However, disciplined timing and robust financial management are required. Given the historic volatility of Bitcoin, we are cautious about building transactions that offer downside protection and potential buybacks. BTC only unfolds when it presents clear and additional growth. Our goal is to responsibly fund expansion while always protecting long-term benefits.
CN:Hive is actively investing in next-generation mining hardware, such as the fleet’s S21+ Hydro Asic. I’m not going to pretend to understand what’s going on “under the hood,” but perhaps I can explain how these cutting-edge water-cooled machines give us an edge over our competitors in terms of performance or unit economics? Are these tools sufficient to get your needs out of the box, or do you need to explore further in-house optimizations to improve efficiency and hashrate density?
DD: S21+ Hydro Asics represents a major leap in mining efficiency and has deliberately placed a bet on this technology as the basis for its next stage of growth. Water-cooled ASIC miners are environmentally responsible for their superior energy efficiency and reduced environmental impact. Liquid cooling requires less energy than traditional air systems, reducing total site power consumption and improving power usage. These systems eliminate high-speed fans, reduce noise pollution, and are more suitable for community integration. A stable thermal environment extends the life of your equipment and reduces e-waste. Additionally, hydroelectric setups are often combined with renewable energy sources such as hydroelectric power generation, further minimizing carbon dioxide emissions. Together, these factors make water-cooled miners a more sustainable option for responsible Bitcoin mining operations.
At Hive, we believe that hardware is just part of the equation. The way you deploy, tune and manage hardware at scale, in particular, really sets your leaders apart. So we have developed our own firmware optimization that fine-tunes the voltage and frequency settings to push performance beyond factory specifications while maintaining energy efficiency.
CN:Hive reported a total operating profit margin of approximately 35% in 2024. However, since half of 2024, the industry economy has clearly been strengthened while network difficulty is at its highest ever. That being said, what margin profile do you expect from the upcoming quarter and full fiscal year hives?
DD: Sustainability across all market cycles is a central aspect of our strategy. At a Bitcoin price of $120,000, our total mining margin is about 65%, and our break-even hash price is close to $20. Nevertheless, we maintain one of the most streamlined teams in the industry and the lowest G&A costs among our peers and are extremely disciplined in capital allocation. This efficiency will keep the cost structure competitive and will remain profitable even if Bitcoin falls below $100,000.
CN: How will diversification into GPU cloud services or AI computing complement the core Bitcoin mining business, or is this a natural extension? Does Hive’s Green Data Centers expect to ultimately offer more share of AI, machine learning, or other crowd workloads as a hedge against the crypto cycle?
DD: Entries to HPC and AI cloud services are not pivots. In fact, Hive was the first Bitcoin miner to launch an AI strategy, seizing the opportunity shortly after Ethereum moved to proof. It quickly and intentionally reused GPU infrastructure to provide high-performance, sovereign AI calculations to businesses, research institutes and other mission-critical users.
Its foresight is paying off as Buzz HPC has already reached revenue milestones earlier than planned. As AI and data center infrastructures become more and more national security priorities, we see enormous tailwinds driving demand for trustworthy green computing.
This is also smart risk management. As cryptography becomes softer, the computational demand for AI remains robust. Over time, we hope that green data centers will drive both blockchain and AI economies. Its dual engine gives the Hive a sustainable competitive advantage and a path to long-term, diversified revenue growth.
CN: How are you preparing for a potential recession or unexpected shock in the Bitcoin market? Are you using hedging strategies to protect you from price shaking, or is the Hive essentially fully exposed to Bitcoin with the confidence that its low cost and strong balance sheet will carry you through the bare market? Or do you just want the best?
DD: Our belief in the long-term value of the Bitcoin network is at the heart of our strategy. However, they manage risk through structural benefits such as minimal liability, low operating costs, and flexible financial management. Our fleet is designed to withstand discipline and slump. You can monetize BTC when promoting additional growth, but you are not forcing sellers. Our philosophy is simple. A strong balance sheet, efficient operation, and a long-term conviction.
CN: The entire Bitcoin mining sector is exposed to an increasing scrutiny of ESG from regulators, environmental groups, and even investors concerned about energy consumption and carbon emissions. We have seen several jurisdictions consider moratoriums or mining bans (the Paraguay debate is just an example), and miners are now keen to prove their climate qualifications. In your view, is the industry doing enough to address these concerns? How does the Hive contribute to improving the narrative about the environmental impact of Bitcoin mining?
DD: The ESG discussion of mining is valid, but in many cases it lacks nuance. The Hive is always a first miner that can be played. Since its inception, green energy has been prioritized in Iceland, Sweden, Canada and now Paraguay. We believe the industry must lead in transparency, accurate emissions data and aggressive grid integration. We are also working on a story shift. Bitcoin mining can bring net profits to the energy system by stabilizing the grid, monetizing the chain, and supporting the community. At Hive, we support that claim through action and investment.
CN: Do you expect shakeout first when high-cost or stacked miners struggle and network growth slows? How do companies like Hive stand in this scenario? Are you ready to gain market share from a potential dropout or get assets/equipment from a struggling miner?
DD: Shakeout is not only likely, but healthy. The post-harving landscape separates efficient operators from other operators, and the hives are uniquely placed for profit. We run lean, avoid leverage and operate on a large scale using renewable power. When distressed assets enter the market, we become opportunistic, but only if they meet our strict ROI and ESG standards. This is a cycle where resilience comes first, and that’s where we focused on strategy.
CN: How does Hive approach site selection and energy procurement? Paraguay’s large-scale hydro project appears to be trapped in relatively low-cost renewable electricity. Are you looking at other regions with cheap power for future expansion, or do you feel that your current mix already offers a competitive energy cost profile?
DD: Energy is important in mining, and the way jurisdictions are assessed is accurate. We want low-cost renewable energy, regulatory stability, and grid reliability. Paraguay now has become an important part of the global fleet, as it meets all these standards and more. But we haven’t paused here. We are actively investigating further opportunities as diversification helps ensure low-cost energy in the long term while mitigating geopolitical and operational risks.
CN: I’m interested as a follow-up from the previous question. If Paraguay is the ideal location for operation, why not base it on 100% of the operation? What are the benefits of geographical diversification?
DD: That’s why Paraguay is politically stable and offers a wealth of hydropower, so that’s why we chose to invest there. However, like any other jurisdiction, there are risks. These include regulatory changes, grid infrastructure restrictions, and regional trade dynamics. We have developed strong government relationships and work closely with local utilities to ensure integrity. By investing in grid upgrades and developing local talent, we help us build long-term resilience in our business. Nonetheless, our goal is global resilience. Paraguay is our flagship, but our operational playbook remains multisite and multicountry.
CN: Some investors see (micro) strategies as a proxy for Bitcoin exposure, not primarily software companies. Given that Hive holds BTC on its balance sheet and is currently performing data center and HPC operations, how do you want investors to see Hive? Are you basically part of a miner, part of a digital asset infrastructure, or a de facto bitcoin ETF? Do you feel the need to sell yourself as a more balanced alternative to the “infinite money glitch” reputation of strategy?
DD: Hive is a new kind of Bitcoin infrastructure company. Long before the latest wave of corporate Bitcoin recruits, Hive became the first public company to hold BTC on its balance sheet. In many ways, he helped define the Bitcoin financial model.
However, it’s not just a hashrate story or a BTC proxy. It builds a renewable digital infrastructure with two different complementary monetization layers: Bitcoin mining and high-performance computing. Think of it as a green data center business operated at the intersection of blockchain and AI.
Unlike companies that focus on short-term quarters, Hive is dedicated to building sustainable infrastructure for decades to come. We provide investors with a diverse range of exposure to both decentralized networks and computing layers that enhance next-generation innovation, while creating long-term financial and digital sovereignty.
CN: Do you think there is room for strategic collaboration (or totally acquisition) between mining companies and Treasury companies like Strategy? Did you approach it from strategy for discussion? Or are you fundamentally different and creating synergy on the other side of the Bitcoin ecosystem?
DD: We respect the strategy built as a BTC vehicle focused on the Ministry of Finance, but the models are fundamentally different. As a traditional Bitcoin miner, it differs from the strategy in that it generates Bitcoin by protecting the network through a high-performance computing infrastructure. Our business model relies on operational efficiency and energy strategies. In contrast, the strategy is a software company that holds Bitcoin as a financial asset. They get exposure by purchasing rather than production. Both models benefit from the appreciation of Bitcoin, but miners are proactive in their contribution to the ecosystem, but their strategies are primarily strategic investors. Although there has been no direct discussion so far, it is always open to exploring strategic partnerships when creating shareholders forholders and align with the ESS of operational discipline.
