Paraguay’s national power utility ANDE has signed a memorandum of understanding with crypto infrastructure firm Morphware that formally opens the door to exploring Bitcoin mining as part of the country’s energy and digital-infrastructure strategy. The deal marks a shift from Paraguay simply hosting private miners toward evaluating a utility-led, government-controlled model for deploying mining capacity.
Morphware described the MoU as the start of “analysis and development of initiatives related to digital assets, advanced processing infrastructure, and strategic energy driven technology opportunities in Paraguay,” explicitly listing Bitcoin mining as one possible use case. The company said the agreement creates an “official path” for technical evaluation and project development “under Paraguay’s legal and regulatory framework,” signaling this is more than a one-off pilot and could become an organized, government-backed process.
Morphware CEO Kenso Trabing framed the economic case in straightforward terms: put stranded or underutilized electricity to work, and keep deployments inside regulated, 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,” Trabing said. “By redeploying Bitcoin miners on regulated, utility controlled sites, we can transform unused electricity into productive compute that serves both the Bitcoin network and the global AI economy. This is what the future of midstream electricity looks like: grids that do not just deliver power, but own a stake in the digital infrastructure they enable.”
That language ties Bitcoin mining to a broader pitch: high-density “power-to-compute” infrastructure that can potentially flex between mining and adjacent workloads — a narrative that has increasingly linked mining operations to AI-style data-center demand in recent market conversations.
The MoU comes against a backdrop of enforcement actions: Paraguayan authorities have reportedly seized ASIC miners from operations accused of electricity theft or tariff fraud. Morphware told Bitcoin Magazine that ANDE is considering converting seized equipment into Paraguay’s first government-run Bitcoin operation in partnership with the firm. Morphware said the government is currently holding roughly 30,000 confiscated miners “stacked to the ceiling,” many in warehouses with no mining experience on the government side.
Under the proposal now formalized in the MoU, those machines would be redeployed at utility-controlled sites rather than left idle. An initial phase would involve about 1,500 confiscated miners installed near existing electrical substations where the infrastructure to handle large loads already exists. ANDE would retain ownership of the equipment and operate the sites directly, while Morphware would provide technical guidance and training for utility staff. According to Trabing, Morphware’s role is advisory and operational support rather than a revenue-sharing operator: “This is about regulated, utility-controlled sites… Not people hiding in the countryside.”
The arrangement, if implemented, would convert enforcement seizures into a state-managed resource for both national revenue and grid-enabled compute capacity — a notable experiment in how a utility can integrate digital infrastructure into its energy portfolio.
At press time, BTC traded at $68,644.
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