Expensive Electricity, 9 Bitcoin Mining Companies Stop Operations in Paraguay

Todaysgist, News Nine Bitcoin mining companies have halted operations after rising electricity costs affected high-consumer customers in Paraguay.

According to data provided by the Paraguayan National Electricity Administration (ANDE), the services of these companies were stopped due to the interruption of their payments, or simply because they did not want to continue operating.

Revenue received from selling electricity to bitcoin miners is starting to be affected by rising electricity costs.

ANDE commercial manager Hugo Rolon said that while there had been no contract cancellations as a result of the fee hike imposed on bitcoin miners last month, service disruptions had occurred.

“Regarding crypto mining clients, we have not processed any contract cancellation requests. We have nine clients that were canceled because they did not pay their bills or because when they were regulated into that category, they said they would not continue the activity,” Rolon was quoted as saying. Bitcoin.comWednesday (28/8/2024).

Several bitcoin mining industry representatives have warned about the impact of recent electricity cost hikes, which have raised energy costs for miners by up to 16 percent depending on their electricity expenditure.

Fernando Arriola, director of the Paraguayan Fintech Chamber, said the country risks becoming irrelevant for the industry after the increase in question. Previously, several companies had also referred to the possibility of moving to Brazil.

Last month, crypto mining company Penguin announced it had signed a 400MW agreement in Brazil, with another 400MW still under negotiation.

Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling Crypto. Todaysgist is not responsible for the profits and losses arising from investment decisions.