Paraguay plans to end special crypto power contracts by 2027

Paraguay’s Bitcoin miners now have an expiration date. State electricity utility ANDE has said that special power contracts for intensive users, including crypto mining operations, will end on December 31, 2027, with no extensions planned under current regulations.

The same utility is signing 15-year deals with AI data centers.

Miners out, AI in

The contracts in question cover operators that draw a collective 943.8 MW from Paraguay’s surplus hydropower. That electricity flows from the Itaipú and Yacyretá dams, and it has made eastern Paraguay one of the most attractive mining destinations around.

Now the government is redirecting that advantage. AI and high-performance computing data centers are being offered 15-year agreements priced around $49/MWh.

The clearest example involves Kuntur, a company linked to Araico and to the planned $12 billion Iguazú AI City project. Kuntur secured a 15-year contract for up to 286 MW to power an AI data campus.

That supply won’t arrive all at once. The deal ramps up gradually, starting at 6 MW in December 2026.

HIVE has the most to lose

No public miner is more exposed than HIVE Digital Technologies. The company’s Paraguayan sites house roughly 77 percent of its operating mining capacity, per CoinDesk, with research findings putting the share in a range of about 77-80%.

HIVE runs two facilities in the country. Its Yguazú site is about 200 MW, and its Valenzuela site is about 100 MW.

Those locations have powered much of the company’s recent hashrate growth. That growth now sits on power contracts with a fixed end date and no renewal path under the current rules.

HIVE is not alone in feeling the squeeze. The number of legal mining operators in Paraguay has already dropped from 71 to 41, following strict enforcement against illegal grid connections.

Costs have climbed as well. Tariffs for crypto mining have risen to around $30/MWh, roughly double earlier levels, and operators now face upfront deposit requirements on top of that.

Why Paraguay is pivoting

The motivation, as the available findings frame it, comes down to what the government wants in return for its electricity. Officials appear to favor projects that create more jobs and commit to longer horizons.

An AI data campus tied to a $12 billion development pitches something different: a bigger economic footprint and a longer relationship.

Money isn’t vanishing from ANDE’s side of the ledger either. The utility is expected to keep generating hundreds of millions of dollars annually from intensive users despite the shift.

What this means for miners and investors

For HIVE shareholders, the key question is what happens to roughly three-quarters of the company’s operating capacity after December 31, 2027.

The difference is in the pricing and the terms. Miners are paying around $30/MWh on contracts set to lapse, while AI operators are being offered around $49/MWh on 15-year deals.

There is also a timing wrinkle worth watching. Kuntur’s AI campus begins at just 6 MW in December 2026 and ramps toward a maximum of 286 MW, while the miners’ 943.8 MW of contracted load faces the 2027 cutoff.

That gap raises an open question about how much surplus power sits idle, or gets reallocated, during the transition.

For now, the signals to track are fairly concrete. Watch for any HIVE disclosures on contingency plans, any regulatory changes that reopen extension talks, and further long-term AI contracts from ANDE.