Paraguay Bitcoin Boom Draws Global Miners to Cheap Hydro Power
Paraguay · Technology
Key Facts
- Fourth place— Paraguay ranks 4th globally in crypto processing, per local expert Joaquín Morínigo.
- US$250m— Crypto-mining generated over US$250 million for Paraguay in 2025, says Morínigo.
- 943.8 MW— Mining draws 943.8 MW of power demand across 41 companies.
- 13.5%— That demand equals about 13.5% of Paraguay’s Itaipú allocation.
- HIVE expansion— HIVE Digital added 300 MW in Paraguay by November 2025.
- US$56m deal— HIVE bought Bitfarms’ Yguazú facility in January 2025.
- 100% renewable— All of Paraguay’s electricity comes from hydro, mainly Itaipú and Yacyretá.
Local experts say Paraguay is now the world’s fourth-largest bitcoin producer, powered by dirt-cheap Itaipu hydro electricity. No independent ranking confirms it, but the numbers are turning heads.
Paraguay bitcoin is the story, and it is turning into a global sensation. Paraguay has quietly become a hotspot for bitcoin mining, powered by some of the cheapest electricity on Earth. Local experts say it now ranks as the world’s fourth-largest producer of the cryptocurrency, behind only Russia, the United States, and the United Arab Emirates. That claim comes from Joaquín Morínigo, a Paraguayan crypto specialist, as reported by La Tribuna on 7 August 2026. No independent audit yet confirms the ranking, but the underlying numbers are hard to ignore.
Cheap Hydro Power Draws the Miners: Paraguay bitcoin
Paraguay generates nearly all its electricity from renewable hydro sources. The Itaipú and Yacyretá dams produce far more power than the country can use, so surplus energy goes to miners at bargain rates.
Miners love that mix because bitcoin mining is energy-hungry, and cheap power is the single biggest cost.
Paraguay’s fully renewable grid also helps firms meet environmental scrutiny from investors and regulators.
The state utility, Ande, manages a special industrial group for intensive energy users. That group includes 41 companies with combined demand of 943.8 MW, about 13.5% of Paraguay’s Itaipú allocation, according to Bloomberg Línea Brasil on 6 August 2026.
For scale, one major mining complex uses electricity equivalent to the consumption of 20,000 middle-class homes. That is a facility-level example, not the national total, but it shows the sheer size of these operations.
The demand also highlights how much surplus power Paraguay has, as the Itaipú dam alone generates more than 14,000 MW in peak seasons.
Miners often set up near the dam to cut transmission losses. That proximity keeps their power bills low and their operations efficient.
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| AAVE | 91.04 | -0.21% | -70.45% | 91.23 | 91.68 | 90.43 | 119,313,440 |
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HIVE Digital Leads the Foreign Push
Canada’s HIVE Digital is the most visible foreign player. In January 2025, it acquired Bitfarms’ Yguazú facility in Paraguay for US$56 million, closing the deal in the first quarter of that year, as reported by FinanceFeeds.
HIVE then expanded aggressively. By 31 March 2026, it had delivered 300 MW of new capacity in Paraguay across three phases: June 2025, early September 2025, and 10 November 2025, according to its FY2026 results covered by TradingView.
The company now has 440 MW of global power capacity, with most of it in Paraguay. That scale makes Paraguay central to HIVE’s strategy, not a side project.
HIVE’s moves have drawn attention from other miners. The combination of low power prices and a stable, dollar-linked economy makes Paraguay an attractive alternative to places like Kazakhstan or Texas.
The firm’s phased approach also lets it manage construction and grid integration smoothly. Each new phase adds capacity without overwhelming local infrastructure.
Government Support Grows
Paraguay’s government has warmed to crypto mining, seeing it as a source of export revenue. The sector generated more than US$250 million in 2025, Morínigo told La Tribuna.
That money flows into the economy through taxes, wages, and purchases of local goods. It also helps offset Paraguay’s energy surplus, which would otherwise go to waste.
The blockchain summit in Asunción this week, covered by Asunción Times, highlighted the government’s pro-crypto stance. Officials framed mining as a bridge to broader tech investment, including artificial intelligence data centres.
But there are concerns. Miners consume vast amounts of power, and some worry about strain on the grid during dry seasons.
Ande has tried to manage that risk by setting strict conditions for the special industrial group.
Officials also see mining as a way to attract foreign direct investment. That steady inflow of capital could help fund wider infrastructure projects.
Why This Matters for Investors
If you invest in Latin American energy, infrastructure, or tech, Paraguay’s bitcoin boom is a signal. It shows how surplus hydro power can be monetised, turning a national resource into a global export.
For expats and nomads in Paraguay, the mining boom brings jobs and investment. It also means more demand for housing, logistics, and services near the big mining sites.
The lack of an audited ranking should temper your excitement. Morínigo’s claim is plausible, but it is based on media reports, not verified data.
Watch for hard numbers on hashrate and output. If Paraguay truly produces this much bitcoin, someone will eventually publish audited figures.
Until then, treat the fourth-place claim as a strong indicator, not a fact.
The country’s stable currency and open economy add to its appeal for long-term capital. That stability is a rare commodity in the region.
Frequently Asked Questions
Is Paraguay really the world’s fourth-largest bitcoin producer?
Local expert Joaquín Morínigo says yes, per La Tribuna on 7 August 2026. He places Paraguay behind Russia, the US, and the UAE. But no independent, audited ranking has confirmed this claim, so treat it as an expert opinion, not a verified statistic.
What makes Paraguay so attractive for bitcoin mining?
Paraguay generates all its electricity from renewable hydro sources, mainly Itaipú and Yacyretá. That means abundant, low-cost power with a clean reputation. Miners can buy surplus energy at rates far below global averages, making their operations highly profitable.
How much money does bitcoin mining bring to Paraguay?
The sector generated more than US$250 million in 2025, according to Morínigo as reported by La Tribuna. That includes revenue from electricity sales, taxes, and associated economic activity. The government expects this figure to grow as more miners set up operations.
Which companies are investing in Paraguay’s bitcoin mining?
HIVE Digital is the most prominent, having acquired Bitfarms’ Yguazú facility for US$56 million in January 2025 and then expanding to 300 MW of capacity by November 2025. Other firms in the state utility’s special industrial group total 41 companies with 943.8 MW of combined demand.
Connected Coverage
- Paraguay Earns More From Bitcoin Miners Even as Half of Them Leave
- Paraguay First, Brazil Next: The Energy Logic Behind Bitcoin Data Centers in Latin America
- Paraguay’s Hydropower Draws Major Bitcoin Mining Investment
- False Bitcoin Announcement on President’s X Account Highlights Digital Threats in Paraguay
Sources: Paraguayan crypto-sector estimates; ABC Color; Reuters
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error