Excessive Greed: More Bitcoin Mining Companies Are Abandoning Paraguay for Brazil

The recent power hikes that ANDE has enacted for Bitcoin mining companies are already impacting their operations in Paraguay. According to recent reports, the Penguin Group, a cryptocurrency mining operator, has already signed a contract to secure 400MW of energy in Brazil. This could be a potential destination that other companies are considering.

Paraguayan Bitcoin Mining Companies Keep Eyeing Brazil as Destination After Power Fee Hikes

Brazil is being considered by more bitcoin mining companies established in Paraguay as a possible destination. The recent hikes that the National Power Administration of Paraguay (ANDE), which raised these fees as high as 14%, affected the viability of the bitcoin mining operations in the country, and these operators are seeking alternatives to move their activities to.

One of these companies, Penguin Group, has already set its sights on Brazil, securing an undisclosed site to move its operation to in the neighboring country. Penguin Group CEO and co-founder Björn Schmidtke announced that after negotiations, Penguin had secured a contract for 400MW in “excellent conditions” with another 400MW coming.

Bruno Vaccotti, Chief of Public Affairs at Penguin, stated that this movement was motivated by the “excessive greed” that the ANDE has shown, putting in jeopardy over 150 job positions that the company currently hosts in Paraguay.

Vaccoti lamented the effect that the power hike is having on the Paraguayan bitcoin mining industry, criticizing the outcome that will likely result from these measures. He stated:

Today, Paraguay makes every effort to expel an industry, without technical foundations, with an ill-conceived short-term vision and without measuring the impact that greed and arrogance have as a result.

Before, Vaccotti had criticized the actions of the ANDE regarding illegal bitcoin mining, stating that while these activities should be pursued, there were other relevant problems affecting the industry, like the “vulture contracts.“

Meanwhile, bitcoin mining industry representatives are trying to meet with Santiago Pena, the president of Paraguay, and with ANDE officials to discuss a possible reversion of the fee hike to continue operating in the country.

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