CoinDesk
President Gustavo Petro said in an X post Tuesday that Barranquilla, Santa Marta and Riohacha — three cities on Colombia's Caribbean coast — could host bitcoin mining facilities powered by the country's surplus renewable energy, explicitly framing the plan as a path similar to Paraguay's.
A 2024 World Bank report found Colombia generates as much as 75% of its electricity from renewables, more than twice the global average, with wind and solar capacity on the Caribbean coast that has barely been tapped commercially. Petro proposed giving the Indigenous Wayúu community co-ownership in any future mining projects, calling the prospect "an immense boost to the development of the Caribbean."
Why it matters
Petro's remarks came as a direct response to an X post from Luxor Technology's Alessandro Cecere flagging that Paraguay's share of global hashrate has climbed to 4.3% on the back of cheap hydroelectric power from the Itaipu Dam. Paraguay is now the fourth-largest bitcoin mining jurisdiction in the world, behind only the U.S., Russia and China, per Hashrate Index data, and runs on 100% renewable energy from Itaipu and two smaller hydro plants that generate roughly six times what the country's 7 million people consume.
The window for emerging mining nations is widening at the same time: CoinDesk reported in March that publicly listed US miners have signed more than $70 billion in cumulative AI and high-performance-computing contracts, trimming bitcoin treasuries to fund the pivot. As American operators chase higher-margin AI workloads, share of global hashrate is increasingly up for grabs by countries with cheaper electricity and friendlier regulators — and Colombia, on paper, ticks both boxes.
Market impact
The asymmetry defining the moment: industrial miners initially flooded Paraguay in 2021-2022 when electricity could be locked in for around $0.03 per kilowatt-hour, but power costs there have since roughly doubled, and steep deposit requirements from state utility ANDE have squeezed out smaller operators. Well-capitalized players like HIVE Digital and Penguin Group continue to expand, but the easy-arbitrage era is closing.
Frequently asked questions
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What did President Petro propose for bitcoin mining in Colombia?
Petro said in an X post that the Caribbean cities of Barranquilla, Santa Marta, and Riohacha could host bitcoin mining facilities powered by the country's surplus renewable energy, and floated giving the Indigenous Wayúu community co-ownership in any future project.
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How much of Colombia's electricity comes from renewable sources?
A 2024 World Bank report found Colombia generates as much as 75% of its electricity from renewables — more than twice the global average — with wind and solar capacity on the Caribbean coast that has barely been tapped commercially.
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Why is Petro pointing to Paraguay as a model?
Paraguay runs on 100% renewable energy anchored by the Itaipu Dam and has climbed to 4.3% of global bitcoin hashrate, making it the fourth-largest mining jurisdiction in the world behind only the U.S., Russia, and China.
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Why is the opening widening for new mining countries?
CoinDesk reported in March that publicly listed US miners have signed more than $70 billion in cumulative AI and high-performance-computing contracts, trimming bitcoin treasuries to fund the pivot and freeing up share of global hashrate.
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What could complicate Colombia's plan?
Turning an X post into mining licenses, tariff agreements, and grid-interconnection contracts is the harder side of Paraguay's playbook, and Petro's proposal has not yet produced a concrete regulatory framework. Costs in Paraguay have also roughly doubled since 2021, with steep deposit requirements squeezing out…
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