Bitfury And Commons Foundation Partner To Launch Bitcoin Mining Centers in Paraguay
The Bitfury Group is partnering South Korean blockchain firm the Commons Foundation to launch several bitcoin mining centers in Paraguay.
According to Bitfury, the collaboration with the R&D firm will see them set up a network of mining facilities in the South American country. The mining centers will utilize Bitfury’s BlockBox AC mining device.
Moreover, the mining hardware maker noted the hydroelectric power plants at Itaipu and Yacyreta would be used to power the mines.
The collaboration between Bitfury and the Commons Foundation comes two months after the South Korean firm reportedly partnered with the government of Paraguay to develop the world’s largest bitcoin mining center.
At the time, the Seoul-based firm secured the South American country’s commitment allowing for the construction of the “Golden Goose Project” in the Paraguayan city of Ciudad Del Este.
The Paraguayan government made some concessions in support of the project, including securing land for the Commons Foundation near the ‘Itaipu’ Hydroelectric Power Plant.
It also guaranteed to provide mining centers with cheap and clean electricity for 15 years. Further to that, the government proposed undertaking a constitutional revision to offer tax breaks to the Golden Goose project.
These concessions might prove very attractive, with Bitfury noting in its announcement that Paraguay’s current electricity consumption is only half of what the above hydroelectric power plants produce. The rest could be tapped into by the mining centers.
Paraguay wants to explore how it can “use emerging technologies like blockchain and cryptocurrencies” to improve its economy and benefit citizens. And according to Sandra Otazú Vera, a Commons Foundation advisor, these projects will do just that.
In November, the Commons Foundation announced that it would be launching a bitcoin exchange in the South American country later this year.
Bitfury has confirmed plans for a crypto exchange by noting in its announcement that the new platform will integrate Crystal, Bitfury’s web-based software tool for compliance analytics.
Bitfury, which is the largest non-Chinese manufacturer and provider of crypto mining infrastructure, continues to seek growth opportunities even as the general mining industry looks to recover from the effects of the 2018 bear market.
Founded in 2011 and led by Valery Vavilov, the firm raised $80 million in November last year with Mike Novogratz’ Galaxy Digital among the investors.
The full-service blockchain tech company is also reportedly considering an initial public offering (IPO), preferably for listing in London, Amsterdam, or Hong Kong.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.