Large crypto companies are investing in the mining industry of Paraguay

Paraguay's attractiveness to the mining industry is due to its access to cheap renewable electricity produced by the Itaipu hydroelectric power plant. The cost of electricity in the country is only $0.032 per kWh, which is significantly lower than tariffs in other countries, for example, in the USA, where the price can reach $0.20 per kWh. For bitcoin mining, where electricity is the main expense item, this provides a significant advantage.

Low domestic electricity consumption is another reason for excess capacity. With a population of about 7 million and a limited industrial base, domestic demand remains low, allowing for efficient use of excess energy for energy-intensive processes such as mining.

HIVE has commissioned a 200 MW data center in the Paraguayan city of Iguazu. This allowed the organization to raise the hashrate to 11.4 Eh/s. At the same time, Tether has allocated over $2 billion to create 15 mining facilities located in Paraguay, Uruguay and El Salvador.