Bitcoin News Today: Paraguay Aims to Power Bitcoin's Future with Surplus Energy

Paraguay is advancing plans to establish a strategic Bitcoin reserve, leveraging its abundant hydropower resources to position the nation as a global player in digital asset reserves. The initiative, led by Vice President Hugo Velázquez, is expected to be discussed at a key meeting aimed at crafting a legal and operational framework for acquiring and securing Bitcoin as a national asset. The move aligns Paraguay with countries like El Salvador and Bhutan, which have already incorporated Bitcoin into their economic strategies [1].

The country’s hydropower infrastructure, particularly the Itaipú Dam, generates a significant surplus of electricity—over 37,000 gigawatt-hours in the first half of 2025 alone. This surplus, much of which is exported under long-term agreements, could be redirected to Bitcoin mining operations, effectively transforming unused energy into a digital store of value. The proposal is not merely about mining; it seeks to create a sovereign Bitcoin reserve that would diversify Paraguay’s financial portfolio and serve as a hedge against inflation and economic volatility [3].

HIVE Digital Technologies, a major player in the Bitcoin mining industry, is accelerating its operations in Paraguay as part of the nation’s broader digital strategy. The company recently completed Phase 2 of its Yguazú project, surpassing 18 exahash per second in global Bitcoin mining capacity and now producing over 8.5 Bitcoin per day. Powered entirely by renewable hydroelectric energy, HIVE’s operations highlight the feasibility of large-scale, low-cost Bitcoin mining in Paraguay [2]. The company’s CEO, Aydin Kilic, emphasized the strategic advantage of combining Bitcoin mining with AI computing, noting that Paraguay’s surplus energy provides a competitive edge in the global digital infrastructure landscape [4].

The initiative has also drawn attention from global Bitcoin advocates and industry leaders. The upcoming Accelerating Bitcoin conference in Asunción, set for September 15 and 16, will serve as a platform for discussing the implications of Paraguay’s potential Bitcoin reserve. Key speakers include HIVE Digital’s Aydin Kilic and long-time Bitcoin proponent Samson Mow, who has positioned Bitcoin as a foundational element of future financial systems [3]. Civil society representatives, such as Lorena Almada of Bitcoin Paraguay, are also pushing for public education on the topic, ensuring broader societal understanding and support.

However, the proposal is not without risks. Bitcoin’s price volatility—capable of fluctuating by 15 to 25 percent within weeks—presents a challenge for its adoption as a stable reserve asset. Moreover, large-scale mining operations require significant upfront investments and offer limited direct employment opportunities, which could limit broader economic benefits. Paraguay must also navigate its $285 million IMF program, which includes conditions on fiscal responsibility, to ensure that the Bitcoin reserve aligns with existing financial commitments [3].

The concept of a state-backed Bitcoin reserve is gaining traction globally. Countries such as Bhutan, El Salvador, and even the United States—through the accumulation of seized digital assets—are experimenting with Bitcoin as a strategic reserve. Paraguay’s unique access to low-cost, renewable energy positions it to potentially become a regional hub for digital finance and blockchain innovation [1]. If the initiative proves successful, it could inspire similar efforts across Latin America, particularly in nations grappling with inflation and currency instability.

Source:

[1] Paraguay Ready to Construct Strategy Bitcoin Reserve (https://www.livebitcoinnews.com/paraguay-ready-to-construct-strategy-bitcoin-reserve/)

[2] HIVE Digital Technologies Completes Phase 2 of Its Yguaz Project in Paraguay (https://www.newsfilecorp.com/release/264899/HIVE-Digital-Technologies-Completes-Phase-2-of-Its-Yguaz-Project-in-Paraguay-Reaching-18-EHs-Producing-8-Bitcoin-per-Day-from-Hydroelectric-Power)

[3] Paraguay to hold meeting on creating strategic Bitcoin reserve (https://coinfomania.com/paraguay-to-hold-meeting-on-creating-strategic-bitcoin-reserve/)

[4] Hive Digital Technologies ramps up production at Paraguay (https://mugglehead.com/hive-digital-technologies-ramps-up-production-at-paraguay/?utm_campaign=hive-digital-technologies-ramps-up-production-at-paraguay&utm_medium=rss&utm_source=rss)