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Sazmining expands into South America with renewable bitcoin mining facility

source-logo  theblock.co 27 July 2023 16:49, UTC

Hosted bitcoin mining provider Sazmining, which uses 100% renewable energy to power machines, is expanding into South America with a new facility in Paraguay.

Scheduled to open in September, the facility leverages surplus electricity generated by the Itaipu Dam, one of the world's largest hydroelectric projects with 20 turbines capable of generating 14 gigawatts.

The new center will offer hosting for 350 user-owned mining rigs at a rate of 4.7 cents per kWh — less than 30% of the average U.S.-based costs, making it one of the lowest energy cost facilities in the bitcoin mining industry, Sazmining said in a statement.

The expansion positions Paraguay as an “ideal location” for sustainable bitcoin mining and provides a means for the country to monetize surplus electricity generated, Sazmining added.

“By leveraging the surplus electricity, bitcoin mining effectively transforms what was once a loss into a profitable venture for the entire country,” Sazmining President and COO Kent Halliburton said. “Paraguayan politicians and the local power provider, ANDE, have embraced this new development, actively participating in electricity-for-Bitcoin transactions.”

“Sazmining’s larger goals are focused on fostering a more sustainable and forward-looking future by investing in electrical infrastructure that will continue to serve Paraguay for generations,” Halliburton added.

Transforming surplus energy into profit, renewably

The Itaipu Dam dates back to 1971 — coincidentally an interesting year for bitcoin enthusiasts as that's when U.S. President Richard Nixon suspended the convertibility of the dollar for gold.

Paraguay originally joined forces with Brazil to build the dam and Brazil financed the project. Paraguay, however, was left with excess power beyond its needs, and it sold the excess electricity to Brazil at a loss.

The rise of the bitcoin mining industry and the new facility will enable the country to transform the loss into a profitable venture, Sazmining said.

Sazmining is a fully non-custodial service, meaning customers' bitcoin rewards are sent directly from the mining pool to their private wallets, with the company only earning revenue when their clients do. Sazmining said this incentivizes all parties to optimize the efficiency of mining operations, as demonstrated by the cost-effectiveness of the eco-friendly Paraguay facility, alongside its on-site maintenance and dedicated security.

The Paraguay mining center will become Sazmining's second such venture, having previously launched a hydro-powered facility in Wisconsin in January.

More than 50% of bitcoin mining now uses renewable energy, according to a report from ESG analyst and co-founder of CH4 Capital Daniel Batton. Previous reports from the Bitcoin Mining Council, a voluntary bitcoin mining forum first convened by MicroStrategy co-founder Michael Saylor, showed similar figures.