Paraguay is probing state-run Bitcoin mining using confiscated equipment
- ANDE and Morphware are investigating a state-owned Bitcoin mining project in Paraguay.
- To kick things off, a pilot with 1,500 BTC miners is planned at locations controlled by ANDE.
Paraguay’s state-owned electricity utility ANDE has signed a memorandum of understanding with technology company Morphware to explore state-owned Bitcoin mining.
Morphware made these announcement on Tuesday via X. There, the company wrote that the agreement is a formal framework for “collaboration and technical coordination.” The message literally says:
“This agreement establishes a formal framework for collaboration and technical coordination between Morphware and ANDE, with a focus on analyzing and developing initiatives around digital assets, advanced computing infrastructure and strategic energy-driven technology opportunities in Paraguay. […] Morphware and ANDE will also examine the role of Bitcoin mining as a national-level opportunity within Paraguay’s broader energy and digital infrastructure landscape.”
What Paraguay’s state-run Bitcoin push looks like
What is particularly interesting is what is supposed to already exist behind the scenes. As Morphware CEO Kenso Trabing told Bitcoin Magazine revealedthe Paraguayan state holds approximately 30,000 BTC mining devices seized in illegal operations.
Trabing said the devices were “literally stacked to the ceiling.” Some of these machines will be taken from government warehouses and installed under the supervision of ANDE. The first pilot will begin with 1,500 devices at ANDE-controlled locations near existing substations.
The background is Paraguay’s struggle with illegal mining. The country has become a very attractive location for BTC miners due to its cheap hydroelectric power, including from the Itaipú Dam. At the same time, there are increasing cases in which operators are illegally tapping electricity or falsely declaring their activities in order to obtain lower electricity prices.
ANDE should remain the owner of the hardware and maintain supervision. Morphware is intended to provide technical training, operational guidance and know-how for grid connection, ventilation and building conversion. Trabing further explained via X:
“By redeploying Bitcoin miners in regulated, utility-controlled locations, we can turn unused electricity into productive computing power that serves both the Bitcoin network and the global AI economy. This is the future of electricity utilization: Grids not only provide energy, they also hold a share of the digital infrastructure that they enable in the first place.”
According to Bitcoin Magazine, government departments are already discussing whether Bitcoin mined in the future should be sold immediately to finance public spending or at least partially held.
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