- Paraguay’s ANDE had about 944 megawatts contracted to cryptocurrency miners as of April, equivalent to roughly 13% of the country’s Itaipu share.
- Four mining companies—Cademot, Zuns, Muiden and W3X—accounted for 730 megawatts under contracts priced at $44 per megawatt-hour.
- ANDE projects revenue from crypto miners will reach $350 million in 2026, even as the utility moves to drop the industry and competing groups seek to replace it.
Paraguay’s Bitcoin Mining Boom Was Built on Cheap Power
Electricity is the largest operating cost for cryptocurrency miners, which run specialized computers around the clock and receive newly created bitcoin in return. Mining companies have historically sought countries with abundant or inexpensive electricity, along with climates that help keep their machines cool.
Iceland and Scandinavia became early cryptocurrency mining hubs, while Paraguay emerged as an attractive destination because its relatively cheap electricity could cover both the cost of power and the cooling demands created by the country’s subtropical climate.
Mining Companies Control a Significant Share of ANDE Capacity
Paraguay’s state electricity utility, ANDE, had approximately 944 megawatts contracted to cryptocurrency miners as of April. That figure represented about 13% of Paraguay’s share of electricity from the Itaipu hydroelectric plant, according to figures provided by ANDE’s then-president, Félix Sosa, to the local publication ABC Color.
Four companies—Cademot, Zuns, Muiden and W3X—accounted for 730 megawatts of that contracted capacity. The scale of those agreements highlights the central role cryptocurrency mining has played in Paraguay’s electricity market and in the utility’s commercial revenues.
Under their agreements, the miners pay ANDE a flat rate of $44 per megawatt-hour, or less than 5 U.S. cents per kilowatt-hour. The contracts do not include an annual price adjustment, allowing miners to secure electricity at a fixed rate while their operations consume substantial amounts of power.
ANDE Plans to Move Away From Crypto Mining
The mining contracts have generated rapidly growing income for ANDE. The utility projects that cryptocurrency miners will provide $350 million in revenue in 2026, compared with $295 million in 2025 and approximately $100 million in 2024.
Despite those earnings, ANDE is now moving to drop the industry that has become a major source of revenue. The shift has created a contest among three groups seeking to determine what will replace cryptocurrency mining as a major user of the utility’s electricity capacity.
Paraguay also remains a significant global mining jurisdiction. Miners based in the country accounted for about 4% of global mining power in the second quarter, making Paraguay the fourth-largest mining jurisdiction, according to Hashrate Index.
Why This Matters
Paraguay’s changing approach could reshape how the country allocates large volumes of low-cost electricity. Cryptocurrency mining has delivered substantial revenue to ANDE and established Paraguay as a major center for global mining power, but the utility’s decision to move away from the sector puts those contracts and the electricity they consume at the center of a broader competition.
The next stage will depend on which of the three groups succeeds in replacing the miners and how ANDE manages the capacity currently tied to mining agreements. The outcome will affect the utility’s projected revenue, Paraguay’s position in the global cryptocurrency mining industry and the future use of a significant share of its Itaipu-linked electricity.
Frequently Asked Questions
How much electricity did cryptocurrency miners have contracted from ANDE?
ANDE had about 944 megawatts contracted to cryptocurrency miners as of April. Four companies—Cademot, Zuns, Muiden and W3X—accounted for 730 megawatts.
How much do the miners pay for electricity?
The miners pay ANDE a flat rate of $44 per megawatt-hour, which is below 5 U.S. cents per kilowatt-hour. Their contracts have no annual adjustment.
What is happening to cryptocurrency mining in Paraguay?
ANDE is moving to drop the cryptocurrency mining industry despite its growing contribution to utility revenue. Three groups are competing over what will replace the miners’ electricity demand.
