Hashrate Index: Brazil and Venezuela Show Potential to Grow Latam’s Bitcoin Mining Share
Key Takeaways:
Brazil, which has increased its hashrate share by 133% year-over-year, has opened new opportunities for miners, as they can now negotiate directly with companies in the energy generation market to lock up tariffs, bypassing distributor tariffs and other surcharges.
While the report stresses that energy generation outpaces transmission, the Sul region, with its low industrial power rates, can become a bitcoin mining haven for companies seeking to enter the bitcoin mining industry.
Venezuela, on the other hand, shows an untapped potential, as it registers 5 EH/s even under the current conditions. The report states:
“What Venezuela has, and what no other country in Latin America has at the same scale, is a combination of stranded energy and an OFAC licensing framework that is already opening up the country’s energy,”
Due to deficiencies in the power grid, a large portion of the power generated cannot be transmitted to the final consumer. Bitcoin mining operations deployed near generation sources could capture it before it gets lost in transmission.
“The template for private capital entering Venezuela’s energy sector with OFAC authorization already exists. Bitcoin miners can leverage the same legal structure,” the report concluded.
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