Bruno Vaccotti, Head of Public Affairs at Penguin, a Bitcoin (CRYPTO:BTC) mining firm, has highlighted the detrimental impact of "vulture contracts" on the development of mining operations in Paraguay.
These contracts, involving large energy allocations to undisclosed foreign investors, block the use of significant power resources, limiting opportunities for legitimate mining projects.
Vaccotti criticised the National Power Administration (ANDE) for its focus on illegal mining activities, noting that Penguin alone pays $850,000 monthly in power bills.
He warned that if ANDE doesn't address these contracts, the country's Bitcoin mining potential and financial gains will continue to suffer.
This issue emphasises the broader challenges faced by Paraguay's energy management and mining sectors.