Paraguay Retains Cryptocurrency Mining Companies Despite Power Rate Hikes

The National Power Administration (ANDE) president of Paraguay, Felix Sosa, denied reports of a large-scale departure of bitcoin mining companies. He underlined that over 400 MW of projects were awaiting approval and that no companies had gone.

No Exodus In Rate Hikes

Contrary to reports, Sosa assured that recent power rate increases had not driven cryptocurrency miners away. “No cryptocurrency mining company had rescinded its contracts with the institution,” he stated. Local media revealed that ANDE recently signed a new 6MW contract with a crypto-mining company in Coronel Belbrano, Itapua, expanding the legal operations in Paraguay’s crypto sector.

Currently, 72 cryptocurrency firms operate in Paraguay, with more awaiting approval. Sosa highlighted that ANDE has projects totaling 400 MW waiting for governmental greenlight. Regarding the approval process, he explained, “A technical evaluation is carried out to verify where to install, where ANDE has power availability for the installation of this type of load.”

Paraguayan President Santiago Peña echoed Sosa’s confidence, noting that the 15% power rate hike wouldn’t deter new cryptocurrency firms from setting up operations. However, some companies like Penguin Group have decided to move to Brazil, accusing ANDE of “excessive greed.” Despite these departures, Sosa projected that Paraguay’s government would earn $100 million from crypto-mining activities this year.

Industry insiders estimate that cryptocurrency mining operations currently contribute 13% of ANDE’s income. This share is expected to rise to 20% once all pending projects are approved and commence operations.

The influx of cryptocurrency mining projects in Paraguay showcases the sector’s resilience and potential growth despite challenges. With significant investments and new contracts, the country remains a hub for crypto-mining, driving substantial revenue for ANDE and reinforcing its position in the global cryptocurrency landscape.