Paraguay's bitcoin mining industry is facing a significant risk of being cleared out. Insiders say that due to better conditions in other countries, the recent increase in bitcoin mining costs in the country is causing mining companies to reconsider their local strategies. For some companies that have already been looking for alternative regions in countries such as Brazil and Argentina, a 14% increase in electricity costs may be too high. One project is a joint venture between Argentine and Brazilian companies, which is now moving to the Zapala area of Argentina to take advantage of local energy incentives for setting up companies. The joint venture between Zapala Mining and Patagonia 360 will seek to explore the possibility of bitcoin mining using unconventional energy extraction methods from Vaca Muerta, one of Argentina's largest oil fields. The project aims to reach a capacity of 200 megawatts by 2026, starting from the 8 megawatt target in October. This is not the only project seeking to move to other countries after the recent cost increase. Fernando Arriola, chairman of the Paraguayan Fintech Chamber, revealed that several companies have already signed documents to do business in Argentina. (Bitcoin.com) Previously, the Paraguayan National Electricity Administration (ANDE) raised the electricity fees for cryptocurrency mining operators by 14%, affecting the profitability of such companies. Due to the lack of clarity in this field, it has already led to a company that planned to invest more than $400 million in Paraguay to withdraw.

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