Penguin executive: Vulture contracts restrict Bitcoin mining in Paraguay

The Paraguayan Bitcoin mining industry has responded to the involvement of the National Electricity Agency (ANDE) in the closure of several illegal Bitcoin mining farms. Bruno Vaccotti, head of public affairs at Bitcoin mining company Penguin, revealed the existence of three "vulture contracts" that have slowed down the development of Bitcoin mining operations in Paraguay. Vaccotti admitted in a radio interview that illegal mining operations have harmed ANDE's revenues, but he criticized the agency's claims about Bitcoin mining activities. He said that Penguin pays $850,000 in electricity bills per month, which is almost 50% of the $2 million in losses ANDE claims are caused by illegal crypto mining. "Vulture contracts" are agreements signed by ANDE with other undisclosed Bitcoin mining third parties, which affect the power supply of new mines and cause losses to the state. Vaccotti claims that these contracts involving large amounts of energy are usually signed by foreign investors seeking to speculate. The energy allocated to these parties is prevented from being used for these operations, thereby damaging the possibility for real Bitcoin mining investors to utilize the energy involved. Vaccotti stressed that this could have a greater impact than the illegal activities ANDE is pursuing. (Bitcoin.com)