Paraguay’s Bitcoin mining industry is in danger of losing a significant portion of its operations, as companies are reconsidering their presence in the country due to a recent increase in power fees. This has prompted them to explore better conditions in neighboring countries like Brazil and Argentina. Industry insiders have revealed that the 14% fee hike is proving to be too much for some companies, leading them to seek alternatives elsewhere.
One notable project that has decided to relocate is a joint venture between Argentine and Brazilian companies. They have chosen to settle in the Zapala region of Argentina, taking advantage of the energy incentives offered to businesses setting up there. The collaboration between “Zapala Mining” and “Patagonia 360” aims to capitalize on the opportunities for Bitcoin mining by utilizing unconventional methods of energy exploitation in Vaca Muerta, one of Argentina’s largest oil fields.
Their goal is to generate 200 MW by 2026, starting with 8 MW in October. However, this project is not the only one looking to migrate to other countries following the recent power fee increase. Fernando Arriola, president of the Paraguayan Fintech Chamber, has confirmed that several companies have already signed agreements to move their operations to Argentina.
Arriola stated, “Around six of our partners have already secured contracts in Argentina due to more favorable energy prices. The cost ranges from $28 to $37.” He also emphasized that the migration is inevitable given the current conditions in Paraguay, with only difficulties in importing Bitcoin mining equipment potentially slowing it down. “Beyond that, I foresee a migration from Paraguay to Argentina and Brazil within the next six months, without a doubt,” he stressed.
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