Bitcoin

In the Paraguayan city of Hernandarias, a thriving crypto mining sector has emerged, driven by the country's abundant green electricity. Local company Penguin Group, in collaboration with a U.S. partner, has established a large data center near the Itaipu hydroelectric power plant, one of the world's largest. This site is dedicated to Bitcoin mining, artificial intelligence, and cloud services, reflecting Penguin's ambition to transform Paraguay into "Latin America's tech hub." according to <a href="https://www.rfi.fr/en/international-news/20240829-paraguay-s-abundant-hydropower-draws-crypto-miners-legal-and-not" rel="noopener noreferrer nofollow">rfi.fr</a>.
Paraguay's appeal to crypto miners lies in its significant hydropower resources. Over the past three years, more than 60 crypto mining sites have been established in the country, attracting over $1.1 billion in investments. However, the influx of illegal miners has become a serious concern, as these unauthorized operations siphon off substantial amounts of electricity, angering legitimate companies like Penguin.
This month, authorities dismantled a massive illegal crypto farm near Hernandarias, seizing nearly 700 computers and a transformer. Despite such efforts, the illegal mining problem persists, contributing to significant power losses for Paraguay’s state-owned utility company, ANDE. The company estimates it loses almost a third of its produced power, costing nearly $3 million per month.
In response, the Paraguayan government has increased penalties for energy theft, but critics argue that more needs to be done to protect legal operations and ensure energy security. Despite Paraguay's low electricity prices, frequent power cuts and the increasing costs for high energy consumption are driving companies to consider relocating to countries like Brazil, where there is greater legal security.

Paraguay’s Hydropower Attracts Crypto Miners, Both Legal and Illegal

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