Latin America has recently been a hotbed of activity in the global cryptocurrency arena.
El Salvador bolstered its financial security by acquiring $50 million worth of gold, marking a significant addition to its reserves. Simultaneously, the nation is reaffirming its dedication to Bitcoin, maintaining a blended approach to foster both stability and innovative financial strategies.
Meanwhile, HIVE Digital Technologies has expanded its operational footprint in Paraguay. The company successfully completed Phase 2 of its Yguazú Project, now achieving a Bitcoin mining capacity of 18 exahashes per second (EH/s) fueled by renewable hydroelectric power.
El Salvador Bolsters Reserves with Gold and Bitcoin Investments
In a move that resonated throughout the financial world, El Salvador executed a $50 million gold purchase, the first such acquisition in over three decades.
This strategic maneuver elevates the country’s reserve holdings by more than 31%, culminating in approximately 58,105 ounces of gold valued at around $207 million.
Concurrently, El Salvador continues its accumulation of Bitcoin, currently holding over 6,290 BTC, which translates to a value exceeding $706 million.
El Salvador’s approach to reserve management seeks to find a balance, combining gold, traditionally seen as a safe and reliable asset, with Bitcoin, a symbol of emerging financial technologies.
Beyond simply acquiring Bitcoin, the government is also taking proactive steps to safeguard its holdings by distributing its Bitcoin across various wallets, each holding less than 500 BTC. This strategy aims to mitigate potential technical risks, including those associated with advances in quantum computing.
The recent acquisition of gold serves not only to buffer against the inherent volatility of cryptocurrencies but also to convey a clear message to global financial institutions like the IMF. El Salvador demonstrates its commitment to both cutting-edge digital assets and established financial instruments, strengthening its overall financial profile.
HIVE Achieves 18 EH/s Mining Capacity Following Yguazú Project Completion
HIVE Digital Technologies Ltd. made an announcement on September 3rd regarding the successful conclusion of Phase 2 of its Yguazú Project in Paraguay, surpassing a Bitcoin mining capacity of 18 exahashes per second (EH/s).
This milestone was achieved ahead of projected timelines, driven by the installation of advanced ASIC (Application-Specific Integrated Circuit) miners. This enhancement has propelled the company beyond its initial target of 17 EH/s.
As a direct result of these advancements, HIVE is now mining more than 8 Bitcoin on a daily basis across its global operations, thereby reinforcing its position as a key player in the Bitcoin mining industry.
The Yguazú mining facility, powered by 200 MW of renewable hydroelectric energy sourced from the Itaipú Dam, is the company’s most extensive operation to date and was completed within a remarkably short timeframe.
The company has also revealed that progress on its Phase 3 site in Valenzuela, a green energy initiative with a capacity of 100 MW, is nearing completion. This site is expected to be ready for ASIC installation in the coming weeks.
Once fully operational, HIVE anticipates its global hashrate to exceed 25 EH/s, representing approximately 3% of the entire Bitcoin network. This increased capacity is projected to yield a daily output of approximately 12 BTC.
Itaú Asset Launches Dedicated Cryptocurrency Division
Itaú Asset Management, the largest private asset management firm in Brazil, has recently established a dedicated cryptocurrency division within its extensive mutual fund operations.
This new venture will be headed by João Marco Braga da Cunha, formerly a portfolio management director at Hashdex, a pioneering entity in the Brazilian cryptocurrency ETF market.
The primary objective of this new division is to generate superior returns for its clients by leveraging the volatility and unique opportunities inherent in digital assets. This strategy will build upon existing product offerings, such as the Bitcoin ETF and retirement funds that incorporate crypto exposure.
Currently, Itaú Asset manages assets exceeding 1 trillion reais, equivalent to approximately $185 billion, across its investment portfolios.
Itaú’s mobile application already provides direct trading access to 10 different cryptocurrencies, including Bitcoin, Ether, Solana, and USD Coin, utilizing in-house custody solutions.
This new initiative underscores the company’s deepening commitment to the realm of digital assets.
The cryptocurrency division intends to introduce innovative financial products, ranging from fixed-income-style instruments to higher-volatility strategies that incorporate derivatives and staking-based funds.
The post LATAM crypto news: El Salvador doubles down on gold and Bitcoin as HIVE expands in Paraguay appeared first on Invezz