Paraguay is at risk of having a large part of its Bitcoin mining industry vacated. According to industry insiders, the recent power fee increase for bitcoin mining operations is making companies reconsider their permanence in the country due to better conditions in other countries. Industry insiders have reported that the 14% increase might be too much for some companies already seeking alternatives in countries like Brazil and Argentina.

One of these projects is a joint venture between Argentine and Brazilian companies, that will now settle in the Zapala region in Argentina, to take advantage of the energy incentives for companies setting up there. The joint venture between “Zapala Mining” and “Patagonia 360” will seek to exploit the possibilities for bitcoin mining by taking advantage of non-conventional energy exploitation methods in Vaca Muerta, one of the biggest oil fields in Argentina.

The project seeks to reach a generation of 200 MW by 2026, starting with 8 MW in October. Nonetheless, this is not the only project seeking to migrate to other countries after the recent fee hike. Fernando Arriola, president of the Paraguayan Fintech Chamber, declared that several companies had already signed documents to take their business to Argentina.

Arriola stated:

Around six of our partners have already obtained contracts in Argentina, since energy prices are more convenient. The cost varies between 28 to 37 dollars.

Arriola also assessed that the migration is imminent given the current conditions in Paraguay and that only certain difficulties in importing bitcoin mining gear might prevent it. “Beyond that, I see a migration from Paraguay to Argentina and Brazil in the next six months, without a doubt,” he stressed.

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