Paraguay crypto mining has become one of many state’s best-paying electrical energy companies. The nationwide utility, ANDE, expects to gather $350 million from its mining prospects in 2026, in keeping with figures its then-president Félix Sosa gave the Paraguayan every day ABC Coloration in April. That’s 18.6% greater than the $295 million it collected in 2025 and roughly triple the $100 million it took in throughout 2024.

But each a type of contracts has the identical finish date. Beneath ANDE’s personal tariff guidelines, particular provide contracts for the high-consumption group that covers crypto mining and knowledge facilities can’t run previous Dec. 31, 2027. Officers have referred to as that deadline last, and in October the utility signed a 15-year energy take care of a man-made intelligence knowledge middle as an alternative.

How Large Paraguay’s Mining Load Has Change into

Paraguay attracts most of its electrical energy from the Itaipu dam it shares with Brazil. ANDE’s figures put the ability reserved by its mining group at 943.8 megawatts in April, about 13.5% of the 7,000 MW of Itaipu capability that belongs to Paraguay.

That load is concentrated. ANDE counted 41 energetic prospects within the group in 2026, down 42% from 71 initially of 2025,. 4 corporations, Cademot, Zunz, Muiden and W3X, maintain 730 MW between them, greater than a full 700 MW Itaipu turbine. Reserved energy on the very-high-voltage stage jumped from 305 MW in 2024 to 705 MW in 2025 and 870 MW in 2026, in keeping with ANDE knowledge reported by ABC Coloration in September.

The Deadline Written Into ANDE’s Tariff Guidelines

The 2027 cutoff will not be a rumor. The ANDE decision annex that defines the Grupo de Consumo Intensivo Especial says it covers customers who course of knowledge or present storage companies, “together with crypto-asset mining, blockchain, token and knowledge facilities.” It then states that contracts with this group “might not exceed Dec. 31, 2027.”

ANDE needs that vitality again for houses and conventional business, as projections present its spare capability operating out inside a number of years. Miners, for his or her half, have requested for 10-year extensions.

HIVE Has the Most to Lose, and the Most to Cut price With

No listed miner is extra uncovered than HIVE Digital Applied sciences. Its annual report filed with the SEC lists two owned Paraguay websites: Yguazú, purchased from Bitfarms in March 2025 for about $56 million, and Valenzuela, completed in November 2025. As of April 30, 2026, Yguazú used 193.4 MW and Valenzuela 103.3 MW, collectively 296.7 of HIVE’s 384.6 MW in use worldwide, or 77%.

The identical submitting lists W3X S.A. and Zunz S.A. as HIVE subsidiaries in Paraguay, which suggests two of the 4 largest names on ANDE’s mining roster belong to the corporate.

HIVE is blunt concerning the threat. The ten-Okay says the ability agreements at each websites lengthen till Dec. 31, 2027, and that “continued operation will depend on the Firm’s skill to renegotiate” them. It’s nonetheless constructing: a 100 MW enlargement at Yguazú would take its Paraguay capability to 400 MW.

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HIVE mined 1,070 Bitcoin in its newest quarter, as DCForecasts reported, and most of that hashrate sits in Paraguay. Its two websites there produced 18.9 of its 24.0 EH/s of operational hashrate in April.

An AI Contract Arrives Earlier than the Miners’ Expire

On Oct. 22, ANDE signed a 15-year contract with Kuntur S.A., a Paraguayan firm that represents U.S. agency Araico, for an AI, cloud and knowledge middle challenge in Yguazú, the identical district as HIVE’s largest website. ANDE president Miguel Báez stated provide begins with 6 MW on Dec. 1, 2026, rises to 146 MW from April 2028 and reaches 286 MW from April 2029.

The value is $48.91 per megawatt-hour at 220 kV and a mean of $56.39 at 23 kV, set underneath a brand new tariff group for advanced-technology energy-intensive industries. It rises every year with U.S. inflation, with a 2.5% ground. Báez careworn that the contract excludes crypto mining.

The Engineers’ 700 MW Proposal

ANDE’s personal engineers’ union has pushed for a smaller, pricier market. In June it proposed limiting all crypto mining and associated sectors to 700 MW, about 10% of Itaipu’s technology for Paraguay, with contracts of three to 5 years. That’s 243.8 MW lower than miners reserve at present.

The proposal has not been adopted. If AI prospects resembling Kuntur find yourself counting towards the identical restrict, the room left for Bitcoin miners after 2027 can be smaller nonetheless.

Why Miners Nonetheless Have a Sturdy Case

Miners deliver one thing AI campuses don’t: flexibility. Vitality coverage researcher Cecilia Llamosas informed a panel in August that Paraguay’s roughly 900 MW of mining load works like a “fuse” for the grid, with interruptible machines that shut down in minutes when the system is careworn. In different markets, that type of demand response is a paid service.

Additionally they pay. A buyer group that brings in $350 million a yr in exhausting foreign money, with no public funding, will not be straightforward to switch in a single day.

Miners are already squeezed by low hashprice, so low-cost, secure hydropower is strictly the asset environment friendly operators will combat to maintain. Paraguay’s alternative will not be mining or nothing. It’s how a lot mining, at what worth and for a way lengthy.

What to Watch Earlier than 2028

• Whether or not ANDE opens an public sale or tender for capability after Dec. 31, 2027, and at what ground worth.
• Whether or not the 700 MW proposal turns into coverage, and whether or not AI hundreds rely towards it.
• HIVE’s subsequent filings, which should replace traders on its Paraguay talks.

For now, Paraguay’s miners preserve operating on low-cost renewable energy, with two years to show their value to the grid.