Cryptocurrency mining company Penguin executive: "Vulture contracts" slow down Bitcoin mining business development in Paraguay

ChainCatcher news, according to Bitcoin.com, the Paraguayan Bitcoin mining industry has responded to the National Electricity Administration (ANDE) participating in the closure of several illegal Bitcoin mining sites. Bruno Vaccotti, the public affairs director of the Bitcoin mining company Penguin, revealed the existence of three "vulture contracts," which have slowed the development of the Bitcoin mining business in Paraguay.

In a radio interview, Vaccotti acknowledged that illegal mining operations have harmed ANDE's revenue, but he criticized the agency's statements regarding Bitcoin mining activities. He stated that Penguin pays $850,000 in electricity bills each month, which is nearly 50% of the $2 million loss that ANDE claims is caused by illegal crypto mining.

"Vulture contracts" are agreements signed by ANDE with other undisclosed third-party Bitcoin miners, affecting the electricity supply to new mining sites and causing losses to the country. Vaccotti noted that these energy-intensive contracts are often signed by foreign investors seeking speculation.

The energy allocated to these parties is prevented from being used for these operations, thereby harming the potential for legitimate Bitcoin mining investors to utilize the energy involved. Vaccotti emphasized that this could have a greater impact than the illegal activities that ANDE is currently investigating.