Paraguay Exploring Using Seized Miners for State-Run Bitcoin Operation

Paraguay’s state-owned electricity monopoly, ANDE, has entered into a Memorandum of Understanding (MOU) with Morphware to establish a government-led Bitcoin mining program utilizing approximately 30,000 seized mining machines.

The seized hardware, confiscated from illegal operations that stole electricity or misrepresented their business type to secure lower tariffs, is currently idle. Morphware will act as a technical and advisory partner, helping ANDE convert existing utility buildings near substations into mining facilities. This initiative aims to convert Paraguay's abundant, often stranded, hydroelectric power into a new revenue stream for the state utility while ensuring regulated compliance.

Discussions are ongoing regarding the handling of the mined Bitcoin, with Morphware advising a conservative approach using derivatives like BTC futures to hedge production, warning against direct government custody due to cybersecurity risks. The long-term vision is to expand beyond seized hardware, potentially financing new equipment through structured financial products tied to future Bitcoin production.

(Source：Bitcoin Magazine)