Just paid attention to a rather interesting move from Paraguay. This country is planning to activate around 1,500 Bitcoin mining machines—devices previously seized from operators accused of electricity theft. Instead of leaving them idle, they decided to put these miners to use for a strategic purpose.

What’s interesting here is that Paraguay has a major advantage—surplus hydroelectric power from the Itaipu Dam. Instead of letting it go to waste, the government decided to convert this power source into revenue through cryptocurrency mining activities. The national electricity company, ANDE, has signed an agreement with Morphware, a technology company from the US, to roll out this pilot project.

This approach is quite smart. Morphware will provide technical expertise and train staff, but ANDE will still retain full operational control. The mining machines will be installed at locations managed by ANDE, where connections to the national grid are already in place.

At present, they are discussing how to manage the Bitcoin being mined. There are two main directions—to sell right away to generate immediate revenue, or to use futures contracts in the US to hedge risks and minimize cybersecurity threats. No matter which option they choose, this is a strategic move.

What makes Paraguay different is that it isn’t only looking at exporting electricity at low prices. Instead, the country focuses on using its cheap hydropower at home to create more value. The initial pilot project will focus on training and integrating mining activities into the national grid. If successful, this could become a model that other countries with surplus energy should pay attention to.