Felix Sosa, president of the National Power Administration of Paraguay (ANDE), has disregarded reports indicating that a mass exodus of cryptocurrency mining companies could be brewing. Sosa stated that no cryptocurrency company had left the country yet and that there were over 400 MW in projects awaiting approval by the institution.

No Cryptocurrency Mining Companies Have Left Paraguay Even With Recent Power Hikes

Felix Sosa, head of the National Power Administration of Paraguay (ANDE), has disregarded the reports indicating that the recent power hikes enacted by the institution had caused a cryptocurrency mining company exodus. According to local press reports, Sosa stated that no cryptocurrency mining company had rescinded its contracts with the institution.

Rather, Sosa stressed that ANDE had signed a new 6MW contract with an unidentified crypto-mining company that will operate in Coronel Belbrano, Itapua, adding one more company to the ones operating legally in Paraguay’s cryptocurrency-mining business.

With this addition, 72 cryptocurrency companies are operating in Paraguay, and more are waiting for approval to establish their operations. Per Sosa’s data, 400 MW in projects are waiting to be greenlighted by the government to operate.

About the process of approval, Sosa stated:

A technical evaluation is carried out to verify where to install, where ANDE has power availability for the installation of this type of load.

Sosa’s remarks line up with what Paraguayan President Santiago Pena had said before, assessing that the already applied 15% power rate hike enacted to the cryptocurrency mining industry would not discourage companies from entering and setting up their activities.

Nonetheless, companies like Penguin Group had already signed contracts to move their operations to Brazil, citing ANDE’s “excessive greed” as the cause for these actions. Even with these actions, Sosa estimated that the Paraguayan government would receive $100 million in income from these crypto-mining operations this year.

Industry insiders estimate that power supplied to cryptocurrency mining operations accounts for 13% of all the income received by ANDE. This will rise to 20% once all the projects waiting to enter the country get approved and start operating.