Paraguay’s state energy agency ANDE has signed a memorandum of understanding with crypto infrastructure company Morphware, establishing a formal framework for cooperation that clearly includes exploring Bitcoin mining as a national-level opportunity related to the country’s energy and digital infrastructure strategy. This move is important because it shows that Paraguay’s only private mining to the state is evaluating a direct and profit-driven model.
Morphware drafted the Memorandum of Understanding as a starting point for “the analysis and development of initiatives related to digital assets, advanced processing infrastructure and strategic technology opportunities in Paraguay,” with Bitcoin mining as a candidate use case within this broader mandate.
The company said the deal provides a “formal pathway” for technical assessment and project development “within Paraguay’s legal and regulatory framework,” with language that sounds less like a one-off pilot announcement and more like a government-on-rails process.
According to Morphware CEO Kenso Trabing, the economic logic is simple: harness stranded or underutilized power and control deployment within regulated utility sites.
“ANDE has unlocked a powerful new asset, and Morphware is here to turn this asset into a new revenue engine for Paraguay. By redeploying Bitcoin miners to regulated and managed sites, we can transform unused electricity into productive computing that serves both the Bitcoin network and the global AI economy,” Trabing wrote. “This is the future of midstream electricity: grids that not only deliver electricity, but also have a stake in the digital infrastructure that enables it.”
The reference to “average power” and “efficient computing” does double duty. It connects bitcoin mining to a common thread: a high-density computing infrastructure that can in theory switch between mining and its adjacent workloads, especially as the “AI data center” narrative continues to dominate the public market mining narrative.
Arrested Bitcoin miners enter the conversation
While Morphware’s statement did not release deployment numbers, the memorandum’s language about “relocating” miners comes amid enforcement: Paraguay has seized ASIC equipment linked to alleged illegal operations. Trabing told Bitcoin Magazine that ANDE, in partnership with Morphware, will convert the confiscated equipment into the first operation of the Paraguayan government’s bitcoin.
According to Trabing, the Paraguayan government is currently holding around 30,000 arrested Bitcoin miners, many of them from facilities accused of power theft or tariff fraud.
“They’re literally stuck to the ceiling,” Trabing told Bitcoin Magazine, describing government warehouses filled with idle ASIC machines. “They don’t have Bitcoin mining experience. Our role is an advisory role.”
Morphware’s proposal, now formalized in a memorandum with ANDE, is to deploy these machines at utility-controlled sites rather than leave them idle. The first phase will reportedly include around 1,500 captive miners that will be installed near existing power substations where the infrastructure to handle large power loads is in place.
Under the structure under consideration, ANDE would retain ownership of the machines and directly manage the sites, while Morphware would provide technical guidance and training for the utility’s staff. The company’s role, according to Trabing, is primarily operational support rather than revenue participation. “It’s about regulated, utility-controlled sites,” he said. “Not the people hiding in the countryside.”
At press time, BTC was trading at $68,644.
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