“Several companies” are eyeing Latin America – and countries like Argentina and Paraguay in particular – as they seek to create new bases for Bitcoin (BTC) and altcoin mining operations.
Other companies seek to follow in Chinese firm’s footsteps, Infobae and La Nacion say Fintech of the future who last week “announced formal plans to build a Bitcoin mining facility in Paraguay”.
Earlier this year, a number of media outlets across the country reported that at least eight “Chinese groups” were “interested in” moving to Paraguay “with their teams.” This interest, the media suggested, has not disappeared and may even have intensified.
Paraguay has long been on the map of crypto miners and some politicians across the country due to its abundance of hydroelectric power. Factories nationwide often produce excess energy, much of which is currently wasted.
Right now, the Latin America region represents only a fraction of the global bitcoin hashrate. According to Cambridge University data, Paraguay was only 0.18% in August this year, with only 0.05% in Argentina. Other Latin American players also made negligible contributions, including Brazil with less than 0.5%.
Infobae’s own calculations of crypto mining power in Latin America revealed that Venezuela held 0.42% of the world total and Paraguay was in second place with 0.29%.
Either way, that could all change quickly now that Future Fintech has entered. The company was reportedly “invited to Paraguay”.
And according to its CEO Hunag Shanchun, the company “is currently examining ways to proceed with the installation of mining equipment.”
Huang reportedly said:
“We plan to carefully assess this development opportunity in Paraguay. We will work with our local consultant to examine Paraguay’s clean hydroelectric and energy resources, possible locations for the development of a mining farm, and the preferential political treatment we may receive for our capital investment.
The key here is the fact that the Paraguayan government, the company said, had provided “support” for the crypto mining activity.
“Many other companies are considering moving their operations to Paraguay,” media reported – a refrain that has become common in the country since July, when Cryptonews.com reported that the CEO of the local bitcoin mining company Digital assets, Juan José Benítez Rickmann, said miners from mainland China and Taiwan were seeking to settle in the country.
Some 5,500 megawatts of unused power in Paraguay are estimated to be currently wasted, and experts have claimed that this could be exploited to “signal the beginning of an era of bitcoin mining in the country.”
However, the media noted that Paraguay “is not the only country in the region with potential for crypto mining.”
In Argentina, Bitfarms, the Nasdaq-listed Bitcoin miner, has started working on a “mega” crypto farm, with 55,000 mining rigs already installed.
The outlet noted that “most mining companies interested in the region now have their eyes on Argentina’s Tierra del Fuego region, due to its low temperatures – a factor that could help rigs stay cool. without additional refrigeration and cooling systems.
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– Russia, Mexico and Paraguay embark on different crypto routes
– Venezuela’s crypto tourism offer, Paraguay approves huge mining project