Nine Bitcoin Mining Firms Halt Operations Amid Paraguay’s Sharp Power Fee Hikes

Nine Bitcoin Mining Companies Exit Paraguay Amid Energy Cost Surge

Nine Bitcoin Mining – In response to recent increases in power fees, nine Bitcoin mining companies in Paraguay have suspended their operations. The National Power Administration of Paraguay (ANDE) reported that these companies either had their services terminated due to non-payment or opted to halt their operations voluntarily.

Power Fee Hikes Impact Bitcoin Mining Sector

The recent surge in energy costs has begun to affect Bitcoin miners significantly. ANDE’s commercial manager, Hugo Rolon, noted that while no formal contract cancellations have occurred as a result of the fee hikes introduced last month, there have been interruptions in service. Rolon stated:

“Regarding crypto mining clients, we have not processed contract cancellation requests; however, we do have nine clients who were canceled due to non-payment of their invoices or because, when they were regularized to the category, they communicated that they would not continue with the activity.”

Industry Reactions to Increased Energy Costs

The Bitcoin mining sector had anticipated adverse effects from the power fee hikes, which have increased energy costs for miners by up to 16%, depending on their consumption levels. Fernando Arriola, director of the Paraguayan Fintech Chamber, warned that these hikes could render Paraguay irrelevant as a mining hub. He emphasized:

“The recent rate hikes are likely to push Bitcoin miners to consider relocating to countries with more favorable conditions.”

Movement Towards Brazil and Government Criticism

Several mining firms have expressed intentions to relocate operations to Brazil. Penguin, one of the companies considering this move, recently secured a 400MW agreement in Brazil and is negotiating an additional 400MW. Bruno Vaccotti, Penguin’s Chief of Public Affairs, criticized the fee increases, describing them as “excessive greed” on the part of the Paraguayan government.

Government Stance on Power Fee Hikes

In an effort to address concerns from the Bitcoin mining community, industry representatives sought a meeting with Paraguayan President Santiago Peña. Despite their appeals, Peña dismissed the concerns, asserting that while the fee hikes would reduce profit margins for mining activities, they would not deter the industry from operating in Paraguay.

FAQ: Paraguay’s Power Fee Hike and Its Impact on Bitcoin Miners