Power Fee Hikes Affect Bitcoin Miners in Paraguay: 9 Companies Opt-out

The income received by power sales to bitcoin miners is starting to be affected by the measures taken by the National Power Administration of Paraguay (ANDE).

Bitcoin mining companies in Paraguay have been impacted by the recent power fee hikes, with nine companies having their operations suspended.

According to data provided by the National Power Administration of Paraguay (ANDE), these companies either had their service terminated due to the interruption of their payments or just communicated that they did not want to continue operating.

ANDE had announced the increment of power fees for bitcoin miners last month, a move that was met with strong reactions from several representatives of the bitcoin mining industry in the country.

These representatives warned about the effects of the hikes, which raised energy fees for miners by up to 16%, depending on their power expenditure.

The country risked becoming less relevant for the industry after the referred hikes, several bitcoin mining industry representatives stated.

Before the hikes, some companies had also mentioned the possibility of moving to Brazil. Last month, Penguin, one of these companies, announced having signed a 400MW agreement in Brazil, with another 400MW still in negotiations.

Penguin Chief of Public Affairs Bruno Vaccotti criticized this rate increase, stating it was “excessive greed” on the Paraguayan government’s behalf.

Bitcoin miners attempted to meet with the Paraguayan president to mitigate the effects of this action or to avoid its enactment.

However, President Santiago Peña disregarded these concerns, stating that while this measure would reduce the margins of the activity, it would not discourage the practice of the activity in the country.

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