55 Bitcoin mining companies currently operating in Paraguay
According to Benítez, 55 state law firms “will begin to withdraw operations, close companies and leave the country” if the Paraguayan Government and the National Electricity Authority (ANDE) maintain the new electricity prices. energy.
Experts explain that the price of electricity for this entire company increased by 16%. This represents an increase of $8.50, bringing the new price to $66 per megawatt hour used.
As CriptoNoticias reported on June 28, ANDE established new rates for three groups of consumers, including Bitcoin miners: very high voltage (220 kV), high voltage (66 kV) and medium voltage (23 kV). If these companies leave, in addition to damaging the country's image by scaring away investors and companies, the departure of the miners "will be a hard blow for Paraguay's economy." According to Benítez's calculations, at least 1,200 people will be laid off.
Will 1.5 billion dollars be lost?
The businessman recalls that the increase in ANDE threatens a direct investment of $1.5 billion for Paraguay. In addition, some companies that have made multimillion-dollar investments
“They will see the return on their investment delayed and their business plans will have to be significantly revised.”
“I am sure that these companies will not continue with their growth and expansion plans,” he warned.
"They will choose other more serious areas, guaranteeing legal certainty and respecting the agreed conditions," he stated.
Benítez emphasized that by increasing ANDE prices, Paraguay is competing with other countries with higher electricity prices, such as the United States, where electricity prices are $40 per megawatt hour consumed.
This price is "completely uneconomical for digital mining." Additionally, the general director of Digital Assets, a Bitcoin mining company in Paraguay, expressed his hope that the national government and ANDE “correct this decision.”
He confirmed that Kapamad is negotiating with the authorities of the Ministry of Industry and Commerce and ANDE is "looking for a solution." "And we believe that the situation will change as soon as possible," he added.
The status of legal Bitcoin mining in Paraguay has even forced politicians to intervene. Senator Salin Bouzarkis is one of the harsh critics of this solution. In his opinion, ANDE and the government are looting the miners by increasing interest rates. Last week, in a video posted on social media, Bouzarkis questioned whether the government was raising energy prices for miners, who have to pay four times more for raw materials than other buyers such as Argentina and Brazil.
“ANDE suddenly increased electricity prices by 16%, which fraudulently and unfairly made the mining companies' businesses unprofitable. This changes the rules of the game after these companies invested enormous amounts of capital in the country,” Buzarkis argued at the time.
