Argentina is becoming an attractive destination for Bitcoin mining due to lower energy costs and favorable tax conditions, particularly in the special economic zone of Zapala in Neuquén province. Rising electricity tariffs in Paraguay have driven Bitcoin miners to seek cost-effective alternatives.
Operations Kickoff in Neuquén A joint venture between Brazilian and Argentine companies is launching a sustainable mining project in Neuquén this October. Zapala Mining will manage data center operations using ASIC technology, while Patagonia 360 will handle engineering, repurposing gases from hydrocarbon extraction in Vaca Muerta.
Capacity Expansion Projections The Zapala project will start with an initial capacity of 8 MW, aiming to expand to 100 MW by 2025 and eventually reach 200 MW in 2026. Luis Pomata, CEO of Nano Mining Paraguay, suggested the capacity could escalate to 1,000 MW, surpassing the output of a turbine from the Itaipú hydroelectric plant.
Ecological Impact and Fiscal Advantages A key feature of the project is its ecological approach, using shale gas from Vaca Muerta to generate electricity, ensuring a reliable energy supply while minimizing environmental impact. Being in a free zone, the project benefits from significant tax advantages, such as the exemption from import taxes, which are 19% in Paraguay.
Paraguay is concerned about the migration of Bitcoin mining investments, fearing a significant economic impact. Meanwhile, Argentina’s regulatory stability and lower energy costs are drawing more investors, positioning the region as a potential hub for cryptocurrency mining.
The Zapala project is set to become a major Bitcoin mining center in Latin America, representing a strategic adaptation to the global shifting energy and regulatory crypto market.
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