Bitcoin mining company Sazmining has inaugurated a brand-new facility in Paraguay powered entirely by renewable energy. The facility is designed to support customer-owned Bitcoin mining rigs, which draw its energy from the Itaipu Dam, Paraguay’s largest hydroelectric power source.
Sazmining President Kent Halliburton explained to Decrypt that Paraguay was selling 5 gigawatts of power to its neighboring country, Brazil, at a loss due to its unique hydropower generation dynamics. Consequently, the company’s presence has received strong support from local authorities and communities.
By harnessing power from the Itaipu Dam and purchasing surplus energy instead of exporting it at a loss, Sazmining helps transform a hindrance to Paraguay’s GDP into a beneficial force.
Why renewable energy?
Energy costs play a vital role in Bitcoin mining, and Sazmining’s new facility energy costs $0.047 per kilowatt-hour. A significant difference compared to the United States, which averages around $0.17 per kilowatt-hour for energy costs.
While Texas is often celebrated as a strong Bitcoin mining hub, Halliburton sees Paraguay as “the new Texas.” He revealed that, by accepting 95% power uptime instead of 100%, the company could secure lower rates. Additionally, Halliburton expressed confidence in the grid’s future development and the potential implementation of programs similar to those in Texas. Where miners receive energy credits for shutting down their rigs during periods of high demand.
Paraguay’s contribution to the global Bitcoin mining network is relatively small, with the Cambridge Center for Alternative Finance (CCAF) reporting a hash rate production of 0.15% as of September 2021. However, Sazmining views this as an opportunity to prepare for an expected influx of Bitcoin miners, positioning itself ahead of the trend.
Sazmining believes in the potential for growth and development in Paraguay’s Bitcoin mining sector, where renewable energy sources are set to play a vital role.
