Paraguay formalizes digital asset mining using hydroelectric surpluses

Paraguay has taken a historic step by formalizing Bitcoin mining using surplus hydroelectric power. The country is promoting the productive use of its energy and strengthening its energy sovereignty.

The National Electricity Administration (ANDE) signed a Memorandum of Understanding with the company Morphware to launch a national Bitcoin mining program under state supervision, which will be powered by hydroelectric energy that the country does not yet fully utilize.

The agreement, according to information shared by the parties involved, represents a new milestone in the evolution of Paraguay's electrical system. The program envisions implementing seized digital mining equipment in a processing network managed transparently and subject to current regulations. With this project, Paraguay will also transform its energy surplus into a concrete source of technological innovation and revenue generation.

Clean energy and smart computing: Paraguay's new digital strategy

The agreement between ANDE and Morphware represents an important step forward for Paraguay in the development of digital mining under a legal and technical framework defined by the State. 

According to Morphware's CEO, the state agency has taken a strategic step by repurposing already depreciated mining equipment and giving it a second life within a computing system geared towards both network processing, such as Bitcoin, and the development of artificial intelligence. He believes this integration combines two worlds that historically operated separately, marking a new stage in the application of computing power within the Paraguayan economy.

The mining equipment to be used, originally intended for validating transactions on the Bitcoin network, encompasses a wide range of models, from the classic Antminer S9 to more recent versions. Experts believe that while this equipment varies in performance, the synergy between low-cost hydroelectric power—from dams like Itaipu and Yacyretá—and the availability of specialized hardware could allow the country to maintain sustainable profit margins on the network, even in the face of increasing global competition.

However, ANDE emphasizes that the project is not limited to energy production. Its objective is to transform previously untapped resources into productive tools for the country, fostering a processing network that can support various sectors. 

With this vision, Paraguay reinforces its position as a regional laboratory for a more responsible digital mining model, based on clean energy and designed to strengthen its national technological infrastructure.

Sustainable crypto mining with a Paraguayan stamp

According to industry analysts, this agreement represents a structural shift in Paraguay's energy strategy. The country, which traditionally exports a significant portion of its electricity production at reduced prices, is now exploring its domestic use to generate digital value. This decision aims to combining energy efficiency with economic sovereigntyreducing dependence on external income and positioning the State as an active player within the growing digital economy.

Morphware will provide specialized technical support, operational training, and real-time monitoring of crypto mining farms. In addition, the company communicated The collaborative model envisions that the profits generated by cryptocurrency mining will be integrated into state revenues, allowing surplus electricity to be directly converted into productive assets for the nation. The program also paves the way for a comprehensive regulatory framework that could attract technology investment and support the emergence of data centers focused on AI and blockchain processing.

The company summarized it with a long-term vision: “This is what the future of intermediate electricity looks like: networks that not only deliver energy, but also participate in the digital infrastructure they enable.”This concept, supported by ANDE's plans, demonstrates the government's intention to transform its energy into an engine of sustainable innovation.

According to the statements, the state-run cryptocurrency mining program also plans to expand its scope based on the results of the pilot project. If repurposing the seized Bitcoin mining equipment proves profitable, it could be scaled up to a public-private mining model managed from Paraguay, which would increase tax revenue and solidify the country's position as a Latin American leader in sustainable energy mining.