Bitfury Teams Up with Commons Foundation to Launch Bitcoin Mining Operations in Paraguay

Amsterdam-based IT service management company Bitfury has inked a partnership with Seoul-based R&D firm Commons Foundation to launch a network of Bitcoin mining centers in Paraguay.

Announced January 31, the collaboration will see the establishment of a number of mining centers within the South American country and will employ Bitfury’s Bitcoin mining hardware BlockBox AC. Itaipu and Yacyreta, two of the country’s largest hydroelectric power plants, will power the mining centers.

The partnership is part of a broader project spearheaded by Commons Foundation. Piloted in a bid to make Paraguay the largest crypto mining center in the world, “Golden Goose” is a government-backed project which aims to leverage on the country’s abundant source of clean energy.

As it stands, Paraguay only consumes nearly half of the electrical supply produced by the two hydroelectric power stations, Bitfury noted.

According to Commons Foundation advisor and senior staff attorney Sandra Otazú Vera, the country is finding “creative ways to use emerging technologies, like blockchain and cryptocurrencies, to benefit their economy and their citizens.”

In addition to establishing a series of crypto mining centers, Commons Foundation has also disclosed plans of introducing a crypto trading platform in the country, set to be launched later this year. As detailed in the announcement, the crypto exchange will leverage on Bitfury’s compliance analytics platform Crystal.

On top of Bitfury’s recently inked partnership, the company is also reportedly mulling over launching an initial public offering (IPO), either in Amsterdam, Hong Kong, or London.

Prior to working with Commons Foundation, Bitfury has also previously completed an $80 million funding round led by VC firm Korelya Capital, and participated by a number of the industry’s prominent companies, including Mike Novogratz’s digital assets merchant bank Galaxy Digital, Australian investment bank Macquarie Capital, as well as Japanese international advertising and public relations company Dentsu Inc.