Paraguay is set to deploy 1,500 seized Bitcoin miners using surplus hydropower from the Itaipu Dam to boost state revenue. The national electricity utility, Administración Nacional de Electricidad (ANDE), has signed a memorandum of understanding with U.S.-based Morphware to launch a state-led Bitcoin mining pilot. Morphware will provide technical expertise and staff training, while ANDE retains operational control. The initiative aims to convert excess hydroelectric power into revenue through regulated mining operations. The seized mining equipment, previously confiscated from operators accused of electricity theft, will be installed at ANDE-controlled sites with existing grid access. Discussions are ongoing regarding the management of mined Bitcoin, with options including immediate sale or hedging through U.S. futures to mitigate cybersecurity risks. This move marks a strategic shift for Paraguay, focusing on domestic utilization of its abundant low-cost hydroelectric power rather than exporting it at low rates. The pilot project will initially emphasize training and integrating mining operations into the national grid.