HIVE Digital co-founder Frank Holmes recently revealed that several sanctioned nations are engaging in secret Bitcoin mining operations to generate alternative sources of revenue in light of U.S. financial restrictions. During an interview with the Roundtable, Holmes connected a recent decline in global mining difficulty to military strikes on power infrastructure in Iran, suggesting that the country’s military is utilizing energy resources to mine Bitcoin and acquire hard currency.
This trend reflects a larger pattern where countries cut off from traditional financial systems are turning to cryptocurrency mining to bridge economic gaps. Holmes suggested that Iran is not the only nation involved in such activities, hinting that other countries facing U.S. sanctions are also partaking in similar covert operations, albeit undisclosed.
According to Holmes, Bitcoin has emerged as a strategic asset for nations struggling to access dollars, offering a direct pathway to accumulate value outside the conventional financial ecosystem. He noted that disruptions to mining facilities can now be detected through network-level data such as fluctuations in hash rate.
While adversaries of the U.S. are leveraging crypto mining for financial sustenance, HIVE Digital is expanding its operations in U.S.-aligned nations. The company recently bolstered its presence in Paraguay, acquiring infrastructure to scale operations rapidly. Despite divesting a portion of its Bitcoin holdings, Holmes described this move as a strategic trade-off to accelerate production.
Paraguay’s favorable regulatory environment and abundant energy resources make it an ideal location for HIVE’s expansion, especially compared to politically unstable countries in the region. The company’s growth aligns with the belief that Bitcoin mining will thrive in jurisdictions aligned with U.S. economic interests, particularly under the current administration.
HIVE has surpassed 14 exahashes per second (EH/s) in mining capacity, aiming to reach 25 EH/s by the end of November. With an annualized revenue of approximately $315 million, the company ranks among the top players in terms of efficiency and scale. This shift underscores a changing landscape where mining activities are not solely driven by profitability but are increasingly intertwined with global alliances, sanctions evasion, and digital infrastructure for power projection.