Argentina Emerges as New Hub for Bitcoin Mining Projects Amid Rising Costs in Paraguay

• 
  Argentina
  becomes
  attractive
  for
  Bitcoin
  mining
  due
  to
  lower
  energy
  costs
  and
  favorable
  tax
  conditions
  in
  Zapala.
• 
  Joint
  venture
  between
  Brazilian
  and
  Argentine
  companies
  launches
  a
  sustainable
  mining
  project
  in
  Neuquén
  province
  in
  October.

Recent
increases
in
electricity
tariffs
in
Paraguay
have
prompted
Bitcoin
miners
and
data
centers
to
seek
more
cost-effective
alternatives,
with
Argentina
emerging
as
a
new
favorable
location
for
their
operations.
This
shift
is
driven
by
Argentina’s
comparative
advantages
in
energy
and
tax
incentives,
particularly
in
the
special
economic
zone
of
Zapala
in
Neuquén
province.

Operations
Kickoff
in
Neuquén

A
joint
venture
between
Brazilian
and
Argentine
companies
is
launching
a
mining
project
that
will
commence
operations
in
October.
This
initiative
will
leverage
sustainable
energy
resources
and
is
located
in
the
free
zone
of
Zapala,
an
area
offering
significant
fiscal
benefits
for
investors
in
high-energy-demand
technologies,
as
we
wrote
in

Crypto
News
Flash
previously.

The
companies
“Zapala
Mining”
and
Patagonia
360
are
spearheading
this
venture.
Zapala
Mining
will
manage
the
data
center
operations
using
ASIC
technology,
while
Patagonia
360
will
handle
the
engineering
aspects
of
repurposing
gases
from
the
unconventional
hydrocarbon
extraction
in

Vaca
Muerta.

Capacity
Expansion
Projections

The
project’s
initial
phase
will
start
with
a
capacity
of
8
MW,
with
plans
to
expand
to
100
MW
by
2025
and
eventually
reach
200
MW
in
2026.
Luis
Pomata,
CEO
of
Nano
Mining
Paraguay
and
a
promoter
of
the
project,
mentioned
that
the
capacity
could
escalate
to
1000
MW,
surpassing
the
output
of
a
turbine
from
the
Itaipú
hydroelectric
plant.

“There
is
the
capacity
to
reach
up
to
1,000
MW
of
energy,
which
would
be
more
than
what
a
turbine
at
the
Itaipú
hydroelectric
plant
produces,”
added
Pomata.

Ecological
Impact
and
Fiscal
Advantages

A
prominent
feature
of
the
project
is
its
ecological
approach;
it
will
utilize
shale
gas
extracted
from
Vaca
Muerta
to
generate
electricity.
This
initiative
not
only
ensures
a
reliable
and
continuous
energy
supply
but
also
aims
to
minimize
environmental
impact
by
harnessing
local
resources.

“Being
within
a
free
zone,
import
taxes
on
machines
are
not
paid,
which
in
Paraguay
are
19%
and
represent
millions
of
USD
in
savings,”
Pomata
exemplified.

The
reaction
in
Paraguay
to
the
migration
of
these
investments
is
one
of
concern,
as
they
fear
that
Bitcoin
mining
may
significantly
diminish
as
a
local
economic
activity.
Meanwhile,
in
Argentina,
the
promise
of
regulatory
stability
and
lower
energy
costs
is
attracting
more
investors
to
consider
the
region
as
a
potential
hub
for
cryptocurrency
mining.

This
project
in
Zapala
is
not
only
poised
to
become
a

major
Bitcoin
mining

center
in
Latin
America
but
also
represents
a
strategic
adaptation
to
the
global
shifting
energy
and
regulatory
crypto
market.