Summary:
Nine Bitcoin mining companies halted operations in Paraguay due to power fee hikes.
ANDE reported service terminations linked to non-payment and operational cessation.
Power fees increased by up to 16%, raising concerns about Paraguay's relevance in the mining industry.
Companies like Penguin are considering moving to Brazil for better conditions.
President Santiago Peña dismissed miners' concerns, stating the measures would not deter mining activities.
Nine Bitcoin Mining Companies Suspend Operations
Nine Bitcoin mining companies have suspended their operations in Paraguay due to significant power fee hikes affecting high-consumption customers. According to the National Power Administration of Paraguay (ANDE), these companies experienced service terminations either due to non-payment or their decision to cease operations.
Impact of Power Fee Hikes
The income from power sales to bitcoin miners is being adversely affected by ANDE's recent measures. Hugo Rolon, ANDE's commercial manager, mentioned that while no contracts were officially canceled due to the fee hikes, interruptions in service have occurred. He noted:
"As for crypto mining clients, we have not processed contract cancellation requests; we do have nine clients who were cancelled due to non-payment of their invoices or because when they were regularized to the category, they communicated that they will not continue with the activity."
Industry Concerns
Industry representatives have warned that the recent power fee hike, which increased energy costs for miners by up to 16%, could render Paraguay irrelevant for the bitcoin mining industry. Fernando Arriola, director of the Paraguayan Fintech Chamber, expressed concerns over the long-term viability of the country as a mining hub.
Migration to Brazil
Some companies are considering relocating to Brazil, with Penguin recently signing a 400MW agreement, and another 400MW still under negotiation. Bruno Vaccotti, Penguin's Chief of Public Affairs, criticized the fee increase as “excessive greed” from the Paraguayan government.
Government Response
Bitcoin miners attempted to engage with President Santiago Peña to discuss mitigation strategies for the fee hikes. However, he dismissed their concerns, stating that the measures would only decrease profit margins but not deter mining in the country.
What do you think about the state of bitcoin mining in Paraguay after ANDE’s power fee hikes? Share your thoughts in the comments below.
Comments