HIVE’s Bitcoin-Backed Bitmain Deal Fueled 18 EH/s Growth Spurt

HIVE used more than 2,100 bitcoin as equipment deposits during its latest fiscal year, a bet that helped bankroll a rapid expansion in Paraguay while leaving the miner with a much smaller bitcoin treasury.

According to HIVE’s annual report made public on Tuesday, it transferred 2,139 bitcoin under equipment purchase agreements with Bitmain that let it use the tokens as deposits for mining machines while retaining options to repurchase the coins later at fixed prices.

The structure helped HIVE add 18 EH/s of bitcoin mining capacity across 300 megawatts in Paraguay between May and November 2025, one of the most aggressive fleet expansions among public miners during a difficult post-halving market.

The tradeoff became clearer after bitcoin prices weakened in early 2026. HIVE exercised options to repurchase 799 bitcoin, generating a $12.8 million gain, but allowed options covering 1,452 bitcoin to expire unexercised because the repurchase price was above the market price of bitcoin, according to the filing.

That left Bitmain, HIVE’s key hardware supplier, effectively accepting the downside of the bitcoin-linked structure. The expired options meant Bitmain kept the pledged bitcoin at what had become an above-market effective valuation, while HIVE avoided repurchasing the coins at a premium to spot prices and retained the mining machines that helped accelerate its Paraguay buildout.

With quarterly bitcoin production running above 800 BTC, the company could theoretically mine back the 1,452 BTC tied to the expired repurchase options, or replenish the full 2,139 BTC transferred as deposits in just a few quarters, assuming bitcoin’s network hashrate and HIVE’s operating conditions remain steady.

The disclosure adds to evidence that large miners have gained more leverage in the ASIC procurement market, where hardware vendors have become more willing to accept bitcoin pledges, repurchase options and other buyer-friendly structures to secure large orders. American Bitcoin (NASDAQ: ABTC) previously disclosed a similar arrangement with Bitmain earlier this year, pledging bitcoin against miner purchases while retaining redemption rights over an extended period.

That shift reflects a different market from the bull-cycle hardware rushes, when miners often had to pay large upfront deposits to secure machine allocations. After the 2024 halving, weaker hashprice, rising network difficulty and the growing appeal of AI data center conversions have made miners more selective buyers. Suppliers, meanwhile, have had incentives to move next-generation inventory and lock in large customers.

For HIVE, the bitcoin-backed procurement structure supported a major geographic and operational shift. The company said it completed its Valenzuela site in Paraguay, acquired and finished a partially built 100 MW site in Yguazú, and added another 100 MW of new construction at Yguazú. The buildout lifted HIVE’s total bitcoin operating hashrate to about 25 EH/s with a blended fleet efficiency of 17.5 J/TH.

The company then used credits from its Bitmain bitcoin pledge to replace BuzzMiners in Paraguay with S21 XP machines across 30 MW, raising installed hashrate to about 25.5 EH/s. After what it described as the bitcoin bear market of February 2026, HIVE said it tuned firmware across its ASIC fleet to improve profitability and efficiency, leaving global operating hashrate at 24.5 EH/s at 16.4 J/TH.

The result was a larger and more efficient mining fleet, but a thinner bitcoin balance. HIVE reported digital currency holdings of $10.8 million as of March 31, including 150 bitcoin, after mining 2,885 bitcoin during fiscal 2026. The company, historically known for emphasizing bitcoin accumulation, effectively used part of its treasury as a financing tool for hardware and power-site growth.

HIVE is also expanding beyond bitcoin mining. Its BUZZ HPC business generated $19.5 million of revenue in fiscal 2026, nearly doubling from a year earlier, and the company has outlined plans for a 320 MW AI data center project in the Greater Toronto Area. The strategy gives HIVE another way to monetize power and data center expertise as investors increasingly reward miners with credible AI infrastructure plans.