Felix Sosa, President of Paraguay’s National Power Administration (ANDE), has dismissed reports suggesting a mass exodus of cryptocurrency mining companies from the country due to recent power rate increases.
Continued Operations and New Contracts
Contrary to some reports, Sosa confirmed that no cryptocurrency mining companies have exited Paraguay. He revealed that a new 6MW contract was signed with an unnamed crypto-mining company set to operate in Coronel Belbrano, Itapua. This addition brings the total number of legally operating cryptocurrency mining companies in Paraguay to 72.
Future Growth and Project Approvals
Sosa also highlighted the ongoing expansion within the sector, with over 400 MW worth of projects awaiting approval. He explained that ANDE conducts thorough technical evaluations to determine suitable installation sites with adequate power availability. This cautious approach ensures that the infrastructure can support the growing demand from cryptocurrency mining operations.
Government’s Position on Power Rate Hikes
Sosa’s statements align with Paraguayan President Santiago Peña’s earlier comments that a 15% power rate increase for the cryptocurrency mining industry would not deter companies from setting up operations in the country. Despite this confidence, some companies, like the Penguin Group, have opted to relocate to Brazil, citing ANDE’s “excessive greed” as the reason.
Economic Impact
The cryptocurrency mining industry significantly contributes to Paraguay’s economy. Sosa estimated that the government could earn $100 million in income from these operations this year alone. Industry insiders predict that power supplied to these mining operations currently accounts for 13% of ANDE’s total income, with expectations that this figure could rise to 20% once all pending projects are operational.
