Paraguay’s state electricity company, Administración Nacional de Electricidad (ANDE), has signed a memorandum of understanding (MOU) with Morphware to launch a government-run Bitcoin mining program utilizing thousands of seized Bitcoin miners and unused hydroelectric power. The agreement formalizes cooperation between ANDE and Morphware, appointing the latter as a technical and advisory partner to regulate and legalize Bitcoin mining activities. Paraguayan authorities have confiscated approximately 30,000 mining machines previously operated illegally, often exploiting low electricity rates through theft or fraudulent business registrations. Paraguay has gained recognition as an attractive location for Bitcoin mining due to its low-cost hydroelectric power, especially from the Itaipu Dam. However, the prevalence of illegal electricity use forced the government to take stringent action, leading to the seizure of numerous miners. Until now, these machines have remained inactive without a clear plan for their utilization.
Under Morphware’s proposal, the seized miners will be relocated to electricity-controlled sites managed and supervised by ANDE, while Morphware will provide training, operational guidance, and technical support. Existing utility buildings will be converted for Bitcoin mining to transform unused electricity into a new revenue source. Paraguay’s complex electricity pricing system categorizes Bitcoin mining under higher rates, which illegal operators have sought to evade. Government oversight of mining operations will ensure compliance and generate direct income. Opinions within the government vary regarding Bitcoin’s use and management; some officials favor immediate sale of mined coins to fund public services, while others advocate for holding them to mitigate risks through financial markets. Morphware has advised a cautious strategy. This initiative is also reshaping Paraguay’s energy export approach, as the country currently consumes only a portion of its generated electricity, exporting the surplus at low prices. Mining presents an opportunity to convert excess energy into local financial gain. The agreement marks a new chapter for Bitcoin mining in Paraguay by effectively utilizing seized equipment, potentially paving the way for future investments in advanced mining hardware through financial markets if the model succeeds.
Source: bitcoinmagazine
