Bolivia's foray into Bitcoin mining has relied heavily on cheap, subsidized natural gas. However, as this foundation weakens, the country is exploring alternatives.
A partnership between Alps Blockchain, an Italian firm, and local company Qurubiqa aims to revitalize a dormant 127 MW thermal power plant in Cochabamba. Currently operational at 27 MW, this facility is generating a hashrate of 1.23 EH/s. The ultimate goal is to maximize its capacity to 127 MW, supported by agreements that offer tax breaks from the local government.
#What led to the shift from subsidies to stranded energy?
The significant increase in Bolivia's hashrate—over 2,400% year-over-year through the first half of 2026—was largely fueled by subsidized domestic natural gas, which was priced at about $1.30 per MMBTU. These prices starkly contrasted with market rates that typically range between $8 and $12. As the government began to reduce these subsidies, the attractive financial landscape that initially drew miners began to erode.
The thermal power plant in Cochabamba has become a stranded asset, meaning it remains an underutilized but functional piece of infrastructure. Alps Blockchain’s innovative model focuses on enhancing auto-consumption of this trapped energy, directly converting it into Bitcoin mining profits.
#How does the dollar play enhance mining operations?
Another advantage is that payments for the mining activities occur in US dollars. Amidst a fiscal crisis in Bolivia, where confidence in the local currency, the boliviano, has diminished, this USD-denomination strategy offers a financial refuge. Structuring mining revenues in USD helps Alps Blockchain avoid the currency volatility that other sectors in Bolivia are currently facing.
Under the newly elected right-leaning government, which openly encourages foreign investment, the structure of this partnership aligns well with broader economic goals. It showcases how cryptocurrency mining can facilitate dollarization in Bolivia while avoiding a formal shift to a dollar economy.
#What are the implications for investors?
If Alps Blockchain successfully scales its operations from 27 MW to the full capacity of 127 MW, it could significantly contribute to the global Bitcoin hashrate and elevate its standing to that of medium-sized publicly traded miners.
However, potential investors should be cautious. Bolivia's historical challenges with foreign energy companies during the nationalization era raises concerns about the stability of favorable tax exemptions. What's granted today could potentially be rescinded tomorrow, making the investment landscape uncertain.