Major Crypto Companies Invest in Paraguay's Mining Sector

The primary driver attracting investment to Paraguay’s mining industry is access to cheap and renewable electricity, generated by Itaipu — one of the largest hydroelectric power plants in the world.

Currently, electricity in Paraguay costs around $0.032 per kWh, which is significantly lower than in many other countries. In the U.S., for instance, rates can reach up to $0.20 per kWh depending on the state. For Bitcoin mining, where energy costs represent the largest portion of expenses, this is a critical advantage.

Another favorable factor is Paraguay’s surplus energy capacity. Domestic electricity demand remains relatively low due to the country’s small population (7 million people) and limited industrial base.

Combined, these conditions create a unique opportunity for energy-intensive industries like crypto mining to utilize excess power. The Paraguayan Industrial Union (UIP) noted that current capacities can support mining, though it warned of possible grid overload by 2029 if demand continues to rise.

For example, HIVE has already launched a 200 MW data center in the city of Iguazú, boosting its hashrate to 11.4 EH/s. Tether has invested over $2 billion in building 15 mining centers across Paraguay, Uruguay, and El Salvador.

Previously, Tether CEO Paolo Ardoino stated that the company intends to invest significant funds into the mining sector, including projects in Paraguay, which would position it as the leading public mining firm globally.

See also: "BIT Mining Abandons Bitcoin Mining and Starts Buying Solana"

#Paraguay, Invest

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