Paraguay's national electricity company, ANDE, has signed a memorandum of understanding with crypto infrastructure firm Morphware to initiate the country's first government-led Bitcoin mining project. The pilot phase will deploy approximately 1,500 Bitcoin mining machines seized by law enforcement, utilizing the country's surplus hydroelectric power for compliant mining operations. Under the agreement, ANDE will oversee ownership and regulation of the mining facilities, while Morphware will provide technical and operational guidance. The government is currently debating whether to sell the mined Bitcoin directly for public spending or to hedge risks through financial markets and retain some assets.