This revelation underscores a growing trend: governments excluded from global banking networks are increasingly leveraging cryptocurrency mining to fill economic voids. Holmes implied that Iran is not alone in this strategy, suggesting that other sanctioned nations are also engaging in similar covert operations. While much of this activity remains hidden, Holmes emphasized that disruptions in mining can be detected through fluctuations in the Bitcoin network’s hash rate, offering subtle clues about geopolitical tensions and underground mining efforts.
Holmes also described Bitcoin as a strategic asset for countries struggling to access U.S. dollars. Mining offers a direct path to accumulate value without relying on traditional financial institutions, making it an appealing option for regimes facing economic isolation.
In contrast to these covert operations, HIVE Digital is expanding its presence in more stable, U.S.-aligned regions. The company recently scaled up its operations in Paraguay, acquiring new infrastructure to boost production. Although this required selling part of its Bitcoin holdings, Holmes called it a calculated move to accelerate growth. Paraguay’s favorable regulatory environment and abundant energy resources make it an ideal location for HIVE’s expansion, especially compared to politically unstable areas.
This strategic shift aligns with broader expectations that Bitcoin mining will thrive in jurisdictions friendly to U.S. economic interests. HIVE has already surpassed 14 exahashes per second (EH/s) in mining capacity and aims to reach 25 EH/s by November. At current levels, the company is generating around $315 million in annualized revenue, positioning itself as a leader in both efficiency and scale.
Holmes’ remarks reflect a changing global landscape where Bitcoin mining is no longer just a business venture, it is becoming a tool for economic survival, geopolitical maneuvering, and digital power projection.
