Paraguay is flipping thousands of confiscated mining rigs into a government-run Bitcoin operation, harnessing surplus cheap hydropower—while commercial miners struggle and pivot to AI.
Paraguay's state electricity utility ANDE, partnering with Morphware, is launching a pilot to redeploy ~1,500 Bitcoin miners (seized from illegal mining operations) in a state-run mining program. Authorities have stockpiled nearly 30,000 confiscated rigs from electricity-theft crackdowns, often stacked high in warehouses.Fueled by abundant low-cost hydroelectric power—mainly from the massive Itaipú Dam (14 GW capacity, far exceeding domestic needs for Paraguay's ~7 million people)—the initiative aims to monetize excess green energy.This echoes Bhutan's approach since 2019: hydropower-driven mining has built holdings of over 13,000 BTC!
Meanwhile, commercial Bitcoin mining faces squeezed margins post-halving. Publicly listed firms like Core Scientific, Riot, and Bitdeer have sold >15,000 BTC since October to cover costs. Many are shifting hash power toward AI and high-performance computing for steadier revenue. Paraguay and Bhutan show a twist: While private miners diversify away from Bitcoin, select governments with surplus clean energy see state-led mining as a strategic tool—turning "waste" power and seized assets into geopolitical and fiscal advantage.