The landlocked South American country is now the fourth-largest bitcoin mining jurisdiction in the world, behind only the U.S., Russia and China, per Hashrate Index data.

Paraguay’s mining activities run on 100% renewable energy, anchored by Itaipu and two smaller hydro plants that generate roughly six times what its 7 million people consume.

Industrial miners initially flocked there in 2021-2022 when electricity could be locked in for around $0.03 per kilowatt-hour.

However, power costs have roughly doubled since, and steep deposit requirements from state utility ANDE have squeezed out smaller operators, but well-capitalized players like HIVE Digital and Penguin Group continue to expand.

The opening for emerging mining countries is also widening because of what is happening in the U.S.

CoinDesk reported in March that publicly listed American miners have been pivoting toward AI and high-performance computing, signing more than $70 billion in cumulative AI contracts and reducing their bitcoin treasuries to fund the transition.

As U.S. operators chase higher-margin AI work, the share of global hashrate is increasingly up for grabs by countries with cheaper electricity and friendlier governments.

Colombia ticks both boxes, however, moving from an X post to actual policy frameworks, mining licenses, and tariff agreements could prove to be a challenge.

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Stephanie Cohen (CoinDesk)

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