Felix

In the face of rising <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">energy costs</a>, <a href="https://ultramining.com/news/en/bitfarms-expands-bitcoin-mining-with-renewable-energy-in-paraguay/" rel="noopener noreferrer nofollow">Paraguay</a> is emerging as a hotspot for cryptocurrency mining companies. Felix Sosa, president of Paraguay’s National <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">Electricity</a> Administration (ANDE), has refuted claims of a mass exodus of crypto mining companies due to recent electricity rate hikes. He confirmed that no company has terminated its contract with ANDE, highlighting the country's growing reputation as a crypto mining hub.
Amid concerns over the impact of increased electricity rates, Sosa announced that ANDE recently signed a new contract for 6 MW with an unnamed crypto mining company set to operate in Coronel Belbrano, Itapúa. This addition brings the total number of legal crypto mining companies in Paraguay to 72, with more waiting in line for approval, according to <a href="https://news.bitcoin.com/ru/rukovoditel-energeticheskogo-sektora-paragvaya-ni-odna-kompaniya-po-dobychi-kriptovalyuty-poka-ne-ushla/" rel="noopener noreferrer nofollow">Bitcoin.com</a>.
Over 400 MW of projects are awaiting the government’s green light, indicating a strong demand for crypto mining operations in the country. Sosa explained that a technical assessment is underway to determine suitable locations with available power capacity for these new ventures. This aligns with Paraguayan President Santiago Peña’s earlier statement that the recent 15% increase in electricity tariffs for the crypto mining industry would not deter companies from establishing operations in the country.
While some companies, like Penguin Group, have opted to move their operations to Brazil due to what they describe as ANDE’s "excessive greed," Sosa remains optimistic about the sector's growth. He estimates that Paraguay will generate $100 million in revenue from crypto mining operations this year alone.
Industry experts estimate that electricity supplied to crypto mining operations currently accounts for 13% of ANDE’s total revenue. This figure is expected to rise to 20% once all pending projects are approved and operational. The potential for significant economic gains underscores Paraguay’s strategic position in the global cryptocurrency mining landscape.
The Paraguayan government is actively working to facilitate the growth of the crypto mining industry by providing adequate infrastructure and power resources. The collaboration between ANDE and crypto mining companies reflects a shared vision of harnessing Paraguay’s abundant energy resources to fuel technological advancement and economic prosperity.

Crypto Mining Companies Flock to Paraguay, Ignoring Electricity Price Increases

Ultramining_Eng

Other articles published on Aug 5, 2024

Solana Remains on the Security Status Hook Despite SEC's Court Move

Bitcoin’s Dominance Reaches a Peak of 58% in a Free-Falling Market

Lawmakers introduce bipartisan bill to fight AI Deepfakes

🔴 PengyOS - LiveStream 24/7

Chainlink ETF- The Next Big Thing in Crypto Investment for 2024?

Ethereum: 3 Reasons ETH Investors Are Buying This New Cryptocurrency For Major Profits

Join our free newsletter for daily crypto updates!