Paraguayan Bitcoin Miners: Industry Threatened by New Energy Tariffs
A group of Paraguayan Bitcoin (BTC) and altcoin miners has expressed concerns that new energy tariffs could have devastating consequences for their industry. The National Electricity Administration of Paraguay recently implemented a 13% to 16% increase in electricity costs for miners. The Paraguayan Chamber of Digital Asset Mining, a newly formed association, warned that these price hikes would have a significant negative impact on the Bitcoin mining industry and could potentially lead to its disappearance in Paraguay. The chamber also highlighted the potential loss of significant revenue for the country. They further emphasized that the consequences would extend beyond financial implications, with potential job losses and a loss of confidence in the government. Despite the Paraguayan government’s pro-business stance, the mining body criticized its actions, stating that they would unjustifiably affect a sector that greatly benefits the country. The association includes major BTC mining players such as Muiden, Antilia Sur, Archer, Richford, and Bitfarms. It was formed in June with the aim of advocating for pro-business regulations and claims that Bitcoin mining currently contributes $1.5 billion per year to the Paraguayan economy.
The National Electricity Administration (ANDE) has classified around 50 mining firms as part of an “especially intensive consumption sector.” These companies will face a monthly price increase of 16%, with tariffs rising from USD/KW 55.88 to USD/KW 65.04. ANDE has also been cracking down on illegal crypto mining, collaborating with the police to seize nearly 10,000 ASIC rigs from undisclosed crypto mining centers.