Energy Advisor 2025-10-24 – Inter-American Dialogue

LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

October 24, 2025

Why Are Crypto Mining Companies Flocking to Brazil?

Multiple cryptocurrency mining firms are eyeing expanding into Brazil amid a growing supply of low-cost, low-carbon electricity. // File Photo: DRN Studio via Adobe Stock.

Q

At least seven firms that mine cryptocurrencies are actively negotiating power-supply contracts with electricity providers in Brazil, sources close to the discussions told Reuters on Sept. 30. Brazil’s renewable energy-heavy electric grid—which has grown increasingly dominated by wind and solar power in recent years—presents crypto miners with low-cost and steady electricity prices, the wire service reported. What key advantages does Brazil pose to prospective investors in cryptocurrency mining, relative to other countries in Latin America? What challenges might the industry face in Brazil over the medium and long term? How might an increased footprint of cryptocurrency mining operations affect the reliability and affordability of Brazil’s power supply?

A

Erick Vera, vice president of business development at FBOX Cooling Solutions: “Brazil offers a rare combination of scale, clean energy and market flexibility that makes it one of the most attractive destinations for cryptocurrency mining in Latin America. With nearly 90 percent of its electricity generated from renewable sources—mainly hydro, wind and solar—the country provides miners access to low-carbon, competitively priced and relatively stable power. The recent liberalization of Brazil’s free electricity market (ACL) allows large industrial consumers, including miners, to negotiate long-term bilateral PPAs directly with generators, a structural advantage few neighboring countries can match. This opens the door for projects that combine economic competitiveness with genuine ESG credentials, an…”

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ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.