Paraguay’s Cryptocurrency Mining Industry Remains Strong Despite Power Rate Increases and Company Relocations

Felix Sosa, head of Paraguay’s National Power Administration (ANDE), has responded to reports that cryptocurrency mining companies are leaving the country due to rising power prices. He stated that no mining companies have actually canceled their agreements with ANDE. Sosa pointed out that there are still more than 400 megawatts worth of mining projects waiting for ANDE’s approval.

Despite local media’s concerns about a potential mass exit, Sosa reassured that the mining sector remains active and committed to investing in Paraguay’s power infrastructure. His message is meant to alleviate fears by showing that interest in cryptocurrency mining in Paraguay is still strong and continues to grow.

Paraguay’s Cryptocurrency Mining Sector Remains Robust Amid New Developments

Felix Sosa, head of Paraguay’s National Power Administration (ANDE), reassured that worries about cryptocurrency mining companies leaving Paraguay are not true. He announced that ANDE has just signed a new contract for 6 megawatts of power with a cryptocurrency mining company, which will start operations in Coronel Belbrano, Itapua. This new contract brings the total number of legally operating cryptocurrency companies in Paraguay to 72.

Additionally, there are more companies still waiting to get approval to start their operations. Sosa’s statement aims to show that the mining industry is still growing and that the recent concerns are not justified.

Felix Sosa mentioned that there are 400 megawatts of cryptocurrency mining projects waiting for government approval. He explained that before these projects can move forward, they must pass a technical review to make sure there is enough power available for them. This review helps ANDE decide the best locations for these new mining sites based on current power resources.

Despite recent concerns, Sosa emphasized that the cryptocurrency mining industry in Paraguay is still expanding. There is strong ongoing interest, and new projects are being planned.

Impact of Power Rate Increase on Paraguay’s Cryptocurrency Mining Industry

Felix Sosa’s comments agree with what Paraguayan President Santiago Pena had said earlier. Pena believed that a 15% increase in power rates for cryptocurrency mining wouldn’t drive companies away from Paraguay. Sosa confirmed that the rate hike is not leading to a large number of mining companies leaving the country.

Instead, many companies are still interested in setting up operations in Paraguay. This means that despite the higher power costs, the mining industry remains active and continues to show strong interest in the country.

Some companies, such as Penguin Group, have chosen to move their operations to Brazil, criticizing ANDE for being too greedy with power prices. Despite these relocations, Felix Sosa expects Paraguay to earn about $100 million from cryptocurrency mining this year. Currently, power for cryptocurrency mining makes up 13% of ANDE’s total income.

This percentage is expected to rise to 20% once all the pending mining projects are approved and start operating. This increase shows that cryptocurrency mining is becoming a more important source of revenue for ANDE.