Felix Sosa, the president of Paraguay’s National Power Administration (ANDE), has dismissed reports suggesting that cryptocurrency mining companies are leaving the country due to recent power rate hikes.
Felix Sosa, the president of Paraguay’s National Power Administration (ANDE), has dismissed reports suggesting that cryptocurrency mining companies are leaving the country due to recent power rate hikes. Sosa clarified that no such companies have exited Paraguay and emphasized that there are over 400 MW in projects pending approval from the institution.
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No Exodus of Cryptocurrency Mining Companies from Paraguay Amid Power Rate Increases
Felix Sosa, the head of the National Power Administration of Paraguay (ANDE), has countered claims that recent power rate increases by the institution have led to a mass departure of cryptocurrency mining companies. According to local media, Sosa confirmed that no contracts with cryptocurrency mining companies had been terminated.
In fact, Sosa highlighted that ANDE has recently signed a new 6 MW contract with an unidentified crypto-mining company set to operate in Coronel Belbrano, Itapua. This addition brings the total number of legally operating cryptocurrency mining companies in Paraguay to 72, with more awaiting approval to begin operations. According to Sosa, projects totaling 400 MW are pending government approval. He stated:
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“A technical evaluation is carried out to verify where to install, where ANDE has power availability for the installation of this type of load.”
Sosa’s comments are in line with previous statements from Paraguayan President Santiago Peña, who noted that the 15% power rate increase for the cryptocurrency mining industry would not deter companies from establishing their operations in the country.
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Despite some companies like Penguin Group planning to relocate their operations to Brazil due to ANDE’s “excessive greed,” Sosa projected that the Paraguayan government would earn $100 million from these crypto-mining activities this year.
Industry experts estimate that electricity supplied to cryptocurrency mining operations currently accounts for 13% of ANDE’s total revenue. This is expected to increase to 20% once all pending projects are approved and become operational.
