Bitcoin miners pay Paraguay $350 million a year, but AI is pushing them out
AI summary
Bitcoin miners in Paraguay pay the state utility roughly $350 million a year under contracts priced at $44 per megawatt-hour, covering about 4% of global bitcoin mining capacity. Those contracts expire on Dec. 31, 2027, and the utility has called that date final while signing a 15-year deal to power a Founders Fund-backed AI campus. Traders should watch for mining capacity shifting or shutting down as AI data centers outbid crypto for cheap power, a cost pressure that could weigh on hashprice economics.
