Paraguay's Bitcoin Mining Contracts Face Expiration as AI Campus Deal Takes Priority
Source Summary
Bitcoin mining contracts supplying power to approximately 4% of global bitcoin mining operations in Paraguay expire on December 31, 2027, at a rate of $44 per megawatt-hour. Paraguay's state utility has declared this expiration date final and has signed a new 15-year agreement to supply power to a Founders Fund-backed artificial intelligence campus instead.
Why it matters
The decision signals a shift in Paraguay's energy allocation priorities away from cryptocurrency mining toward artificial intelligence infrastructure, affecting a significant portion of global bitcoin mining operations.
What remains uncertain
The source does not specify whether bitcoin mining operations will seek alternative power sources or cease operations in Paraguay after the 2027 expiration.
