A country of 7 million people now commands roughly 3% of the global Bitcoin hashrate. Paraguay's mining story is one of the most underreported developments in the industry.

Miners consume an estimated 600 megawatts of electricity there, roughly 25% of the country's share of the Itaipú Dam. Electricity costs run as low as $0.033 per kilowatt-hour, making it one of the cheapest places to mine on Earth.

For decades, Paraguay had been selling its surplus Itaipú power to Brazil for around $10 per megawatt-hour. Bitcoin miners showed up offering $40. By 2024, there were 45 licensed operations with another 20 applicants proposing 2,000 megawatts of additional capacity.

But the boom attracted a massive illegal mining problem. Operations were stealing electricity through fraudulent grid connections at industrial scale. In 2023, authorities shut down 43 illicit networks consuming 90 megawatts combined. Paraguay responded by updating its penal code to impose 10-year prison sentences for electricity theft tied to mining.

In March 2026, the government flipped the script. Rather than just cracking down, Paraguay launched a state-led mining operation using nearly 30,000 seized rigs deployed in government facilities. The national electricity authority now owns and manages the infrastructure directly, turning confiscated hardware and surplus power into sovereign revenue.

(HIVEDigitalTech) operates 300 megawatts across two Paraguayan sites, mining over 12 Bitcoin per day and commanding roughly 3% of the global network. The company says it's on pace to become the largest payer of U.S. dollars in the country every month.

Paraguay had more power than it could use and a dam that's been waiting for a better buyer since 1984. Bitcoin showed up with the best offer anyone had made in 40 years.