Major Crypto Companies Are Investing in Mining in Paraguay
Date: 2025-07-11 Author: Oliver Abernathy Categories: IN WORLD
The main factor driving investment in Paraguay’s mining sector is access to cheap electricity generated by one of the world’s largest hydroelectric power plants, Itaipu. Currently, the cost of a kilowatt-hour in the country is approximately $0.032, which is significantly cheaper compared to countries like the United States, where prices can reach $0.20 per kWh. This creates a major competitive advantage for Bitcoin miners, as electricity accounts for a significant portion of their expenses.
In addition, Paraguay has excess energy capacity due to low domestic demand for electricity. The country has a population of about 7 million people, and the industrial sector is underdeveloped, which leads to the accumulation of spare resources. Such conditions make Paraguay especially attractive for energy-intensive technologies, including crypto mining. The Paraguayan Industrial Union (UIP) confirms that existing capacity is sufficient to support mining operations, but warns of possible strain on the power grid by 2029 if demand grows rapidly.
In practice, large companies are already implementing projects in the region. For example, HIVE opened a data center in the city of Iguazu with a capacity of 200 MW, which allowed it to increase its hash rate to 11.4 EH/s. Tether, in turn, has invested over $2 billion in the construction of 15 mining centers in Paraguay, as well as in neighboring countries - Uruguay and El Salvador. Tether CEO Paolo Ardoino previously announced plans to significantly expand investment in the mining sector, which should help the company become a leader among public mining enterprises.
Thus, Paraguay, with its affordable and environmentally friendly energy, is increasingly attracting the attention of major players in the crypto industry. The ability to utilize excess hydropower creates favorable conditions for further growth of the mining business in the country, although the growth in electricity consumption requires careful monitoring to avoid system overloads in the near future.
