Sazmining Bets on Paraguay’s Hydro Power, Eyes Becoming the “New Texas” of Bitcoin Mining

Sazmining, a Bitcoin mining company, has launched a new 100% renewable energy facility in Paraguay. The facility will draw power from Itaipu Dam, Paraguay‘s largest hydroelectric structure. Sazmining President Kent Halliburton sees this as a game-changer for the industry and Paraguay, according to decrypt.

The company operates Bitcoin mining rigs for customers and takes a 15% commission. Itaipu Dam, which holds the Guinness World Record for the most expensive object ever built, cost $27 billion in 1984. Adjusted for inflation, this number skyrockets to $35 billion.

Halliburton revealed that Paraguay has been selling 5 Gigawatts of hydroelectric power at a loss to Brazil. Because of this, local authorities and communities have welcomed Sazmining’s operation. By buying surplus energy, the company aims to convert a deficit in Paraguay’s GDP into a surplus, Halliburton said.

Energy cost is a critical factor for Bitcoin mining. According to Sazmining, the cost per kilowatt-hour at the new facility will be $0.047. This rate stands in stark contrast to the U.S., where energy costs average $0.17 per kilowatt-hour.

Texas is often cited as a leading region for Bitcoin mining due to its energy programs. Halliburton believes Paraguay could be “the new Texas” for miners, even though its grid is less developed. By agreeing to a 95% power uptime, the company has secured lower rates, he said.

Sazmining’s move comes as Paraguay accounts for just 0.15% of Bitcoin’s global hash rate, according to data from September 2021. Despite this, Halliburton sees the low hash rate as an opportunity, positioning Sazmining ahead of a potential influx of miners to the country.

In summary, Sazmining’s new venture in Paraguay is not only a bold move for the company but also a significant shift for the country and potentially the entire Bitcoin mining industry. By tapping into renewable energy and attracting new business, Paraguay is taking steps to emerge as a global player in the crypto mining scene.