Bitcoin mining firm Sazmining has opened its latest 100% renewable power facility in Paraguay.
The corporate operates customer-owned Bitcoin mining rigs on their behalf, taking a 15% fee for the service. Its new facility will get energy from Itaipu Dam, the nation’s largest hydroelectric dam. Positioned on the border of Paraguay and Brazil, the construction has earned itself the Guiness World File for most costly object on earth, costing a whopping $27 billion to construct in 1984—or $35 billion in case you regulate for inflation.
Sazmining President Kent Halliburton instructed Decrypt that attributable to Paraguay’s distinctive hydropower producing dynamics, it was promoting 5 Gigawatts of energy at a loss to its neighbor, Brazil. That’s why native authorities and communities embrace the corporate’s presence, he mentioned.
Tapping into Itaipu Dam and shopping for their surplus energy as a substitute of Paraguay exporting at a loss, “turns a headwind for Paraguay’s GDP right into a tailwind,” mentioned Halliburton.
Bitcoin mining is an integral piece to the community, however has a considerably controversial relationship to power markets. Specialised computer systems referred to as ASICs faucet into totally different energy producing sources and run the Bitcoin software program in an effort to safe the protocol, incomes BTC in return.
The above signifies that the price of power is a crucial consideration for Bitcoin mining firms. As per Sazmining, mining prices of their new facility might be $0.047 per-kilowatt hour within the new facility–a considerable distinction between the world’s main Bitcoin mining nation, the USA.
For the sake of comparability, the most recent power value report from the U.S. Bureau of Labor Statistics discovered that power prices sit at $0.17 per-kilowatt hour—though that may fluctuate broadly relying on location and throughout industries.
Halliburton mentioned Sazmining is ready to get all of its energy from the dam, that means the brand new facility runs on 100% renewable power.
Texas is commonly highlighted as considered one of Bitcoin’s strongest mining sectors, with refined packages to assist the grid in instances of stress, but additionally make use of their extra energy. For Halliburton, Paraguay is poised to grow to be “the brand new Texas”—however he admits the grid there’s nonetheless a lot much less developed than the lone star state.
This gives an upside with a caveat, he instructed Decrypt. By agreeing to 95% energy uptime as a substitute of 100%, he mentioned, the corporate was in a position to make the most of decrease charges. That mentioned, Halliburton is assured the grid will proceed to develop and import among the packages at present current in Texas. As an example, miners in Texas are given power credit in trade for turning their rigs off throughout instances of excessive demand.
Paraguay is a proverbial bit within the general mining bucket, nevertheless. As of September 2021, the Cambridge Heart for Different Finance (CCAF), positioned Paraguay’s hash price manufacturing at 0.15% of all the Bitcoin mining community.
The Heart has up to date its index earlier this yr, however didn’t instantly reply to a request from Decrypt about its map information.
Sazmining’s President likes this quantity, nevertheless.
“I see it as a possibility for these of us that perceive the dynamics in Paraguay,” he mentioned, including that they’re positioning themselves forward of the “seemingly inevitable rush of Bitcoin miners.”
Edited by Stacy Elliott.