Brazil Turns to Crypto Miners to Solve Its Massive Energy Surplus

Brazil is becoming an increasingly attractive hub for cryptocurrency miners due to a significant surplus of electricity. According to Reuters, at least six projects are currently under negotiation, as some local power plants report production surpluses of up to 70%.

Energy companies see mining as an efficient solution to use unused power, reducing losses and optimizing infrastructure. Brazil's strategy follows a similar model to that of Laos, where cryptocurrency miners are attracted with hydropower to utilize the surplus and help pay off debt generated by dam investments.

Brazil's approach contrasts with measures taken in other countries. In China, a total ban imposed in 2021 forced mining capacity to migrate abroad, while in Thailand, authorities have raided operations accused of destabilizing the power grid. In this context, Brazil views the crypto industry not as a threat, but as a solution for managing its energy surplus.