Bitcoin Mining Taps Paraguay Itaipu Dam to Power Facility

Sazmining’s founder Kent Halliburton has, in a recent statement, confirmed tapping the Paraguay Itaipu dam for cheap energy to power the newly established mining facility. The executive added that the surplus hydropower energy is set to transform Paraguay into the new Texas for Bitcoin mining firms. 

Sazmining Leveraging Access to Surplus Hydropower to Lower Power Cost

Halliburton reiterated that the surplus hydropower would offer cheap energy for its newly launched mining facility, wholly reliant on renewable energy. The firm has emerged as a pacesetter by uniquely running customer-owned mining rigs and only charging a 15% commission fee. 

The mining facility will leverage access to cheap energy from the Itaipu Dam, regarded as the largest hydroelectric dam in the South American country. The dam within the Brazil-Paraguay border is listed in the Guinness World Record as the most expensive structure, with a $27 billion cost tag. The figure would translate to $35 billion when adjusted for inflation. 

Sazmining Facility to Save Paraguay From Selling Power at Loss

Sazmining’s Kent Halliburton alleged that the hydropower generating dynamics of Paraguay compelled 5 Gigawatts sale at a loss to Brazil. Consequently, the proximity of the mining facility near the dam triggered support from the local authorities and communities. 

Halliburton indicated that leveraging proximity to Itaipu Dam and purchasing surplus energy offered a viable solution to the perennial energy export at a loss. The move is set to transform Paraguay’s gross domestic product into a tailwind. 

Bitcoin Mining Labeled Integral Investment Element

Bitcoin mining has become an integral element of investment. Nonetheless, it has become controversial in its relation to energy markets. Specialized computing equipment identified as ASICs leverage multiple power-generating sources to run the Bitcoin software in solving solutions to earn BTC in return.

The consideration of energy cost is critical for Bitcoin mining firms. Sazmining President estimated the facility’s mining cost at $0.047 per kWh. It will set the facility a substantial difference to the leading global country in Bitcoin mining – the United States.

Sazmining Set for 100% Renewable Energy to Power Mining Facility

The United States Bureau of Labor Statistics revealed that energy is priced at $0.17 per kWh, though the cost varies with the location and industries. Halliburton indicated that Sazmining could tap power from the Itaipu hydroelectric plant, making the new facility powered via 100% renewable energy. 

Halliburton admitted that Texas hosts a strong Bitcoin mining sector supported by a sophisticated program to facilitate the grid to overcome stress and optimize the utilization of excess power. Sazmining’s President considers Paraguay as oriented to become the new Texas. However, its grid suffers from development inadequacy compared to the Lone Star state. 

Sazmining Executive Urges Paraguary to Embrace Texas’ Initiatives

Halliburton considers the situation as a unique agreement to 95% power uptime and not 100%. He explained that the firm was capable of leveraging lower rates. 

That said, Halliburton is confident the grid will continue to develop and import some of the programs currently present in Texas. In particular, mining firms earn energy credits whenever they switch off the rigs when the state’s other facility demand more energy during extreme weather conditions.

Paraguay portrays the proverbial bit fitting the crypto mining bucket. Nonetheless, the Cambridge Center for Alternative Finance (CCAF) study in September 2021 ranked Paraguay’s hash rate production at a meager 0.15% relative to the Bitcoin mining network. 

The Center will update the index in early 2023 regarding its map data. Sazmining’s President lauded the updated statistics. He considered it as presenting the opportunity to explore and understand Paraguay’s dynamics. He felt the establishment of the new facility seeks first-mover benefits in what would seemingly trigger the rush of Bitcoin miners as they pursue the cheap energy cost. 

Sazmining is readying the facility to leverage the upcoming bitcoin mining that observers predict to fuel the looming bullish market.