9 Bitcoin miners suspend operations due to power fee surge in Paraguay

Nine Bitcoin mining companies in Paraguay have suspended their operations following significant power fee hikes affecting high-consumption customers.

The National Power Administration of Paraguay (ANDE) reported that these companies either had their services terminated due to unpaid bills or opted to cease operations altogether.

Despite the fee hikes, Hugo Rolon, ANDE's commercial manager, clarified that no formal contract cancellations have occurred, but service interruptions have been implemented.

Rolon stated: "As for crypto mining clients, we have not processed contract cancellation requests; we do have nine clients who were cancelled due to non-payment of their invoices or because when they were regularised to the category, they communicated that they will not continue with the activity."

The recent power fee increases, which raised energy costs for miners by up to 16% based on their consumption, have sparked concerns within the industry.

Fernando Arriola, director of the Paraguayan Fintech Chamber, warned that these fee hikes could render Paraguay irrelevant in the global Bitcoin mining industry.

Some companies had already begun exploring relocation options before the hikes, with Penguin, a notable mining company, securing a 400MW agreement in Brazil and negotiating another 400MW.

Bruno Vaccotti, Chief of Public Affairs for Penguin, criticised the fee increase as “excessive greed” on the part of the Paraguayan government.

In response to these concerns, Bitcoin miners sought a meeting with Paraguayan President Santiago Peña to discuss mitigating the impact of the fee hikes.

However, President Peña dismissed their concerns, stating that while the fee increases would reduce profit margins for miners, they would not deter the continuation of mining activities in the country.

The situation highlights the growing tension between energy costs and the sustainability of cryptocurrency mining operations in Paraguay.

As the industry grapples with these challenges, the future of Bitcoin mining (CRYPTO:BTC) in Paraguay remains uncertain, with potential shifts to other more economically favorable regions like Brazil.

At the time of reporting, Bitcoin price was $62,886.40.