Paraguays Surprise Increase in Miners Electricity Rates Power Costs Surge by 14 Miners Urgently Withdraw Investments

Paraguays Surprise Increase in Miners Electricity Rates Power Costs Surge by 14 Miners Urgently Withdraw Investments

Paraguays Surprise Increase in Miners Electricity Rates Power Costs Surge by 14 Miners Urgently Withdraw Investments

The National Electricity Administration of Paraguay (ANDE) issued a notice on June 26th announcing an increase in electricity tariffs, declaring a hike in the electric costs for the country’s Bitcoin and cryptocurrency mining operations, posing a severe threat to the miners’ operations. Local media reports indicate that ANDE has raised the electricity prices for crypto asset mining, blockchain, tokens, and data centers by 14%, potentially affecting the viability of these industries’ continued operations in the country.

This decision has also drawn strong criticism from the country’s legislators, with Senator Salyn Buzarquis believing that this measure conveys contradictions within the Paraguayan government, which could impact future investments in the sector. Salyn Buzarquis emphasized that it is unfair, considering these companies have already invested substantial funds in Paraguay.

“What message does this send? You’re not welcome, go elsewhere! This is killing business before the wave of massive investments arrives.”

The Vice President of the Paraguayan Digital Asset Miners Association, Andy Jasmin, stated that the increase in electricity tariffs has already caused some to flee the country amid the current instability. Jasmin mentioned that an unnamed company withdrew a $400 million investment because they had been promised that electricity prices would remain stable at least until 2028.

He concluded that these actions signal to investors that Paraguay is not a suitable country for Bitcoin mining, as there is no legal protection, contracts are not respected, investments are not secure, and there is no confidence to bet on this country.