Paraguay’s state electricity corporation ANDE has signed a partnership agreement with crypto infrastructure firm Morphware, setting up a formal partnership framework that clearly includes exploring Bitcoin mining as a national-level opportunity related to the country’s energy strategy and digital infrastructure. The move is significant because it marks a shift from Paraguay simply hosting private miners to a country exploring a more direct, resource-controlled model.
Morphware positioned the MoU as the starting point for “the analysis and development of systems related to digital assets, advanced processing infrastructure, and technology opportunities driven by energy in Paraguay,” with Bitcoin mining being positioned as one candidate use case within that broader mandate.
The company said the agreement creates a “legal pathway” for technology testing and project development “under Paraguay’s legal and regulatory framework,” language that reads a little like a pilot announcement and more like a government process put into racing.
According to Morphware CEO Kenso Trabing, the economic logic is straightforward: put inefficient or inefficient electricity to work, and keep deployment within controlled utility-controlled sites.
“ANDE has unlocked a powerful new asset, and Morphware is here to turn that asset into a new revenue engine for Paraguay. By redeploying Bitcoin miners to controlled, operational sites, we can turn unused electricity into productive computing that serves both the Bitcoin network and the global AI economy,” Trabing wrote. “This is what the future of decentralized electricity looks like: grids that don’t just deliver power, but participate in the digital infrastructure that powers it.”
The reference to “central electricity” and “generative computing” does a double duty. It connects Bitcoin mining to a common place: a high-power integration infrastructure so that, in theory, it can be flexible between mining and nearby operations, especially as the “AI data center” narrative continues to bleed into the story of mining in public markets around the world.
Hold Bitcoin Miners Enter Chat
Although Morphware’s statement did not publish deployment numbers, the MoU’s language about “resending” miners comes within the context of enforcement: Paraguay seized ASIC hardware tied to suspected illegal activities. Trabing told Bitcoin Magazine that ANDE is exploring turning the seized machines into the first Bitcoin operation run by the Paraguayan government in partnership with Morphware.
According to Trabing, the Paraguayan government currently has around 30,000 arrested Bitcoin miners, many of them taken from facilities suspected of stealing electricity or tax fraud.
“They’re literally stacked to the ceiling,” Trabing told Bitcoin Magazine, describing government warehouses filled with idle ASIC machines. “They have no experience mining Bitcoin. Our role is an advisory role.”
Morphware’s proposal, now formalized in a memorandum with ANDE, is to replant those machines in resource-controlled areas instead of leaving them idle. The first phase will reportedly involve around 1,500 miners, installed near existing power stations where the infrastructure is already in place to handle the heavy electricity load.
Under the proposed structure, ANDE will retain ownership of the equipment and operate the sites directly, while Morphware will provide technical guidance and training for service personnel. The company’s role, according to Trabing, is primarily operational support rather than revenue participation. “This is about controlled, resource-controlled areas,” he said. “They are not people hiding in the countryside.”
At press time, BTC traded at $68,644.
The featured image was created with DALL.E, a chart from TradingView.com
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