4,3% of the world's Bitcoin is mined in this country of only 7 million inhabitants

This country is poised to become the world's fourth largest Bitcoin mining power by 2026. We analyze the Hashrate Index report on hashrate dominance in Latin America and the role of hydroelectric power.

Bitcoin's computing power stabilizes at the frontier of 1.004 exahashes per second (EH/s)This milestone is not just a metric of computing power, but a reflection of a massive migration of capital toward jurisdictions with structural energy surpluses. In this new geographical order, a South American nation of barely 7 million It has achieved the unthinkable: surpassing almost all industrial powers and positioning itself as the fourth most important processing node on the planet.

Is Paraguay, which captures today the 4,3% of global Bitcoin hashrate with approximately 43 EH/s operational. According to the report The State of Bitcoin Mining in Latin America (2026) According to the Hashrate Index, the key to this phenomenon lies in a compelling technical piece of data: a surplus of 3.480 MW of clean energyWith an installed capacity of 8.760 MW compared to a peak domestic demand of 5.280 MW, the country uses BTC mining to monetize electrons that, historically, were lost or given away at ridiculously low prices under bilateral treaties.

The Itaipu Dam acts as the thermal engine of this industry. Unlike other regions that depend on volatile state subsidies, energy costs in Paraguay—which range between $0,040 and $0,050/kWh—are based on fully amortized hydroelectric assets with a near-zero marginal cost. This advantage has attracted institutional giants such as HIVE Digital Technologieswhich plans to reach 400 MW of capacity at its Yguazú campus by the end of this year. The professionalization of plants in Ciudad del Este and Hernandarias demonstrates that the country has gone from being a destination of convenience to a long-term industrial infrastructure.

Latin America and its enormous energy potential for Bitcoin

El Latest Hashrate Index report, led by analyst Gerson Martinez, reveals a regional paradox: "Latin America sits atop some of the most abundant energy resources on Earth, yet it only produces between 5% and 6% of the global Bitcoin hashrate."While the United States concentrates 37,4% of the network's computing power, the gap in Latin America is not one of resources, but of politics and economics.

Does the region really need more dams or gas pipelines to take the lead? The report suggests not, because the problem lies primarily in the inability to transform physical potential into stable contracts. As the hash price plummeted to a record low of $27,89/PH/s/day in February of this year, the difference between "durable" and "fleeting" markets became starkly apparent. Paraguay held firm, while other countries with hostile regulatory frameworks or unstable economies saw a flight of miners to more predictable locations.

Brazil and Argentina contrast in infrastructure and macroeconomics

Within this landscape of contrasts, Brazil emerges as the most dynamic competitor in Latin America to challenge Paraguay's leadership in the short term. Its hashrate registered a explosive year-on-year growth of 133%reaching 3,5 EH/s. The report highlights that the full opening of the deregulated electricity market (ACL) in 2024 has been the catalyst for this growth in the country. Essentially, the change allowed large consumers to negotiate directly with generators, bypassing residential tariffs and securing hydroelectric or wind power at competitive prices.

By contrast, Argentina present an 42% drop in its mining powerThe report is unequivocal on this point: the decline is not related to a lack of resources. Despite the Vaca Muerta shale formation—where companies like Unblock Global already operate Bitcoin mining using vent gas—and world-class winds in Patagonia, macroeconomic instability has hampered the industrial scaling of this sector. 

The departure of large-scale operators like Keel Infrastructure, formerly known as Bitfarms, which closed its 40 MW site, explains much of this contraction. According to the research, Argentina has a surplus of energy, but lacks financial confidence.

Bolivia and Venezuela facing the energy mirror of Bitcoin

Another country that is evaluating the report in question is Boliviawhich represents the other side of the coin. According to the report, the country managed to increase its Bitcoin hashrate by more than 2.400%This growth has been driven primarily by the use of subsidized gas. However, analysts emphasize that while this type of expansion generates quick results, it depends on conditions that are difficult to maintain over time.

Furthermore, Bolivia's energy landscape adds pressure to the current model. Gas reserves are showing signs of depletion, and the country is nearing a transition toward energy imports. In this context, the current momentum has a limited lifespan, potentially lasting between two and five years. Thus, as subsidies diminish, cryptocurrency mining operations not connected to renewable sources, such as the Zongo hydroelectric plant or the Santa Cruz wind farms, will face difficulties in sustaining themselves and will eventually relocate.

In contrast, Venezuela It is emerging as a scenario with considerable untapped potential. The report describes it as one of the region's greatest energy opportunitiesPrimarily due to the 7.500 MW surplus in the Caroní River basin. This energy, which currently fails to reach urban centers due to the deterioration of transmission lines, opens an alternative route for developing mining projects directly at the generation site.

According to the firm's analysts, this approach to harnessing Bitcoin mining could transform a structural problem into a profitable option. Mining behind the meter offers the possibility of using that energy immediately, without relying on the national power grid. Furthermore, recent licenses issued by the OFAC, including GL 48A, facilitate international investment in the country. 

In summary, Hashrate Index underscores that the particular situations in the region are creating a unique scenario in which foreign capital could participate in the recovery of energy infrastructure, using Bitcoin as a mechanism to generate returns that stabilize the trade balance and transform underutilized energy potential into a competitive advantage for the region.