Imagine a country where electricity costs pennies, and its source is one of the largest hydropower plants in the world. Sounds like a dream of every cryptocurrency miner? It is Paraguay – a South American magnet attracting investors from all over the globe. Check how to dig cryptocurrencies in Paraguay, legal environment and practice. Who knows, maybe you will be tempted by the crypto business in this country yourself?
This article is part of a larger series entitled: “Paraguay: Plan B for capital and freedom‘
- Paraguay – a pearl for investors and entrepreneurs? Legal, tax and economic climate
- Residence in Paraguay – how to get it and what is the possibilities? A comprehensive guide for 2025
- Cryptocurrencies in Paraguay – regulations, taxes and practice
- (soon) investing in land and real estate in Paraguay – where, for how much and for what?
The patron of the series is the team “Residence in Paraguay”, which helps foreign investors in entering the local market, from receiving a residence, RUC tax number to the purchase of real estate.
Do you have additional questions about residence, cryptocurrencies or real estate in Paraguay? Contact us via the form 👇
Why does Paraguay attract cryptocurrency miners?
The heart of Paraguay’s energetic wealth is the ITAIPú power plant, located on the border with Brazil. This colossus produced in 2023 83.8 TWh of Energy (Itaipú binacional), and a year earlier about 67 TWh. The record was broken in 2016 – 103 TWh. This is more than the whole Paraguay is able to consume. What is happening with the surplus then? Most go to Brazil under an inter -state agreement, but some are sold to mining farms under special energy contracts Gaty.
The Alto Paraná region has become a real center of mining operations. It is here, in the shade of the powerful damipú dam, it works today 46 legal farms having contracts with Ande (as of March 2025), but also numerous illegal installations. Local authorities quickly noticed the potential of this industry – instead of exporting cheap energy, it can be sold to miners who pay rates set in USD, still competitive against the world.
Water energy is not only a matter of low costs. It also green alternativewhich allows Farm operators to boast of ecological mining – an argument is becoming more and more important in the world where ESG (Environmental, Social, Governance) has ceased to be only a fashionable shortcut.
Local mining market
The Paraguayan mining market is a real cultural melting pot. In addition to local entrepreneurs, there are investors from Brazil fleeing from high energy prices, Americans looking for an alternative to the increasingly regulated US market or Asians – especially from China – who, after the prohibition of digging in their homeland, are looking for a new home for their excavators.
Interestingly, in Paraguay you can not only buy land under the farm, but also lease. Local land owners quickly realized that lease of the area to miners is a golden interest – stable income without the need to invest their own capital.
However, it is worth remembering that Mining in Paraguay is a game for large players. Profitability begins at a scale calculated in megawatts, not kilowatt. It is a wholesale business rather than occupying a hobbyist with a few excavators in the garage. The minimum sensible investment is usually several hundred thousand dollars, maybe even millions of dollars – below this threshold, logistics and operational costs eat potential profits.
Main entities and projects in the extraction sector
Among the giants that noticed Paraguay’s potential, the Marathon Digital Holdings – one of the largest players on the American Bitcoin mining market – stands out. The company announced the project 27 MW in the ITAIPú region.
In recent years, several loud projects have appeared on the Paraguayan market. Hive Digital Technologies In March 2025, she took over the 200 MW farm from Bitfarms, planning to increase the computing power from 6 EH/s to 25 EH/s to September 2025. In June, the company finished the first phase of the investment, starting 100 MW and crossing the threshold 11 EH/S. On the other hand Kulr Technology Group In July 2025, it implemented 3,570 Bitmain S19 XP machines in Asunción, reaching 750 pH/SI by announcing an increase to 1.25 EH/s the same summer.
Legal framework and regulations regarding kicking cryptocurrencies
There is no comprehensive law on cryptocurrencies in Paraguay – a project that provided for licensing by MIC was vetoed in 2022. Today, legal farms operate on the basis of AndE contracts in the group Gaty and local building/environmental permits.
The process of formalization of the sector is underway – subsequent draft laws return to parliament, but at the same time Anda sets detailed technical principles, requiring, among others security deposit and settlements in USD.
Temporary ban on digging cryptocurrencies in Paraguay
Paradoxically, despite the fact that Mining is allowed under Ande contracts, in 2024 a project appeared temporary ban mining. Where does such an idea come from? At some point, the scale of illegal connections of the cryptocurrency mine to the network was so large that in Paraguayan cities there were often to the Blackouts. When the cause was determined, the topic was acquired by a large political charge. However, after the public debate and industry pressure infinity – Instead of a ban, dialogue and possible legislative solutions were chosen, e.g. regulations regarding energy theft.
Consequently, the National Electricity Administration (ANDE), preventively, conducts regular raids to illegal installations. Only in 2023, hundreds of cases of illegal energy consumption were detected, which led to network overloads.
Impact of the extraction sector on the Paraguay economy
Paraguay becomes one of the most attractive places for the cryptocurrency mining sector not only in Latin America, but also in the world. According to industry organizations, companies operating legally have already invested approx. USD 900 millionfrom what USD 537 million In infrastructure and equipment.
Benefits for the state budget
The industry declares that it generates, among others:
- USD 69 million from import duties,
- USD 223 million per year for electricity,
- $ 20 million with VAT,
- $ 49 million in the security deposit in ande.
Miners from the GCIA group are currently paying approx. 44–60 USD/MWhafter increases from 2024 by 9-16%. This is more than the rates for some industrial recipients, but still competitively against the world.
Jobs and regional development
The cryptocurrency sector employs – again according to industry data – at least 1170 people, from technicians and electricians to bodyguards and administrators. The next thousands work in supporting industries: construction, logistics, transport or service.
Modern technology centers are being created in the regions of now forgotten, and local businesses are flourishing. The government offers general investment incentives, but the crypto sector operates on the principles of a special GCIA tariff.
Alternative forms of extraction and new investment models
Cloud Mining This is a future for those who want to participate in extracting without getting dirty (and without paying electricity bills). Instead of building your own farm in Paraguay, you can rent computing power from companies that are already operating there.
But this is only on the margins. However, if you feel like working with a flourish, go ahead!
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How to start Mining in Paraguay?
Do you want to join the Paraguayan Gold Fever 2.0? Get ready for a bureaucratic adventure. The first step is establishment of a local company – You don’t move without it. The process is not complicated, but requires the patience and knowledge of Spanish (or a good lawyer).
The next stage is to obtain permits from local municipal authorities and signing the GCIA contract with Ande. Here, real fun begins – each local office has its own requirements, and the process can last from several weeks to several months.
Pro tip: Use the help of a consultant who knows the right people and knows which door needs to be kicked. In the case of a large mine, having a shareholder/investor who can secure a contract with AndE with his contacts may prove necessary.
Do you have additional questions about residence, cryptocurrencies or real estate in Paraguay? Contact us via the form 👇
An alternative is Cooperation with hosting companieswhich already have all permits. You send your excavators, they take care of the rest – from installation to service. This is a more expensive solution, but it saves a lot of nerves and time.
Logistics is a separate chapter. Transport of machines from China or the USA is a real challenge. You have to reckon with customs, import taxes and risk of damage in transport. Service? In Paraguay you will find specialists, but spare parts can be a problem – it is better to have a supply or a contract with a supplier that guarantees quick delivery.
To sum up: Mining in Paraguay is not a business for everyone. It requires capital, patience and readiness to deal with local realities. But for those who cope with challenges, the award can be sweet as Paraguayan sugar cane – but in the form of digital gold.
