Paraguayan senators will discuss the possibility of selling excess energy from the Itaipu hydroelectric dam to miners instead of exporting it to Brazil and Argentina or banning mining.

Senator Lilian Samaniego announced that a public hearing will be held on April 23 to discuss the advantages and disadvantages of Bitcoin mining. In early April, local lawmakers introduced a bill that would ban mining in the country for at least 180 days, out of concern that illegal cryptocurrency mining would steal electricity and disrupt the country's power supply.

However, within a few days, Paraguayan legislators approved a declaration to support local and foreign investment infrastructure. Senator Salyn Buzarquis explained that this initiative will push the Paraguayan Ministry of Industry to sell excess energy to miners.

In a letter to Congress, Bouzarkis noted that in 2024, 45 licensed cryptocurrency miners could earn approximately $48 million for the National Electricity Administration (ANDE). This figure is expected to reach $125 million by 2025 after miners install additional equipment.

Given that the cost of generating electricity from the Itaipu hydroelectric dam hovers around $22 MWh, ANDE can make 45% of the net profit by selling excess energy to local miners at $40 per MWh. According to Buzarkis's calculations, this would be $73 million per year, with value added tax (VAT) amounting to approximately $17 million.

“This flow of funds will save ANDE from bankruptcy. There will be an opportunity to invest more in local infrastructure without increasing the rate for Paraguayans. Thanks to mining, more jobs will appear, which is also beneficial for the local economy,” Buzarkis added at the Senate meeting.

The debate over mining in Paraguay comes ahead of the Bitcoin halving, which is expected to take place on April 20. As a result, the reward for miners will be reduced from 6.25 BTC to 3.125 BTC. According to the forecast of former BitMEX CEO Arthur Hayes, the Bitcoin halving will trigger a “fiery” sale of crypto assets.