Large bitcoin mining farms look for cheap electricity supply, a key factor for profitability in this industry. At the same time that China is no longer a global hub for bitcoin mining, Paraguay may become a major player in the industry.
Recently, the company Future Fintech announced that it intends to install a mining farm in the country neighboring Brazil. Paraguay intends to attract big bitcoin miners due to its competitively priced energy supply and a surplus production resulting from its participation in the Itaipu hydroelectric plant.
According to Future Fintech, the company is studying the location of the mining farm that will be set up in the South American country. In a statement released by CEO Shanchun Huang, the executive confirms the interest in mining bitcoin in Paraguay.
“We plan to evaluate this development opportunity in Paraguay carefully”.
Considered a renewable energy source, Paraguay produces 5,500 MegaWatts (MG) of surplus hydroelectric power, which could be earmarked for cryptoasset mining activity.
According to Huang, Paraguay can present a favorable positioning for bitcoin mining, attracting large mining farms like Future Fintech.
“We will work with our local consultant to review the conditions of Paraguay’s hydropower supply and clean energy resources, the locations for developing a mining farm, and the preferential political treatment we may receive for our investment”.
With clean energy being produced beyond what the country consumes, eight economic groups are already studying the feasibility of Paraguay becoming a mining hub.