Sazmining Opens Renewable Energy Bitcoin Mining Facility in Paraguay
Bitcoin mining company Sazmining has launched a new facility in Paraguay that runs on 100% renewable energy. The company operates customer-owned Bitcoin mining rigs, taking a 15% commission. The facility will receive power from the Itaipu Dam, which is the largest hydroelectric dam in Paraguay. Sazmining President Kent Halliburton explained that Paraguay sells 5 Gigawatts of power at a loss to Brazil due to its unique hydropower generating dynamics. By tapping into the surplus power from the dam, Sazmining turns this situation into an advantage for Paraguay’s GDP.
The Importance of Energy Costs for Bitcoin Mining
Bitcoin mining relies on specialized computers called ASICs to secure the protocol and earn BTC. As such, energy costs are a crucial factor for mining companies. Sazmining stated that its new facility will have mining costs of $0.047 per-kilowatt hour, significantly lower than in the United States where it stands at $0.17 per-kilowatt hour on average.
Paraguay’s Potential as a Bitcoin Mining Hub
Halliburton sees Paraguay as a promising location for Bitcoin mining, comparing it to Texas. While Texas has advanced programs to support the grid during times of stress and utilize excess power, Paraguay’s grid is still less developed. However, by agreeing to 95% power uptime instead of 100%, Sazmining was able to secure lower rates. Halliburton believes that Paraguay’s grid will continue to improve and import similar programs from Texas.
Paraguay’s Hash Rate Production and Future Prospects
As of September 2021, Paraguay accounted for 0.15% of the entire Bitcoin mining network’s hash rate production, according to the Cambridge Center for Alternative Finance (CCAF). Sazmining sees this as an opportunity and aims to position itself ahead of the expected influx of Bitcoin miners in Paraguay.
Hot Take: Paraguay’s Renewable Energy Bitcoin Mining Facility
Sazmining’s new renewable energy facility in Paraguay marks a significant step towards sustainable Bitcoin mining. By utilizing surplus power from the Itaipu Dam, the company is able to run its operations on 100% renewable energy. This not only reduces the environmental impact of Bitcoin mining but also takes advantage of lower energy costs. Paraguay’s potential as a mining hub is evident, and with further grid development, it could attract more miners in the future. The country’s commitment to renewable energy aligns with the growing demand for sustainable practices in the crypto industry.
By
By
By
By
By