Colombia's President Wants Bitcoin Mining on the Caribbean Coast

Colombian President Gustavo Petro said on Tuesday that the country's Caribbean coast could become a Bitcoin mining hub, powered by surplus renewable electricity. His post on X named the cities of Barranquilla, Santa Marta, and Riohacha as potential sites. He also proposed that the Wayúu people, Colombia's largest Indigenous community living on that coast, could be co-owners of the project.

The proposal is directly tied to Paraguay's rise as a mining power. Luxor Technology's Alessandro Cecere posted data showing Paraguay now controls 4.3% of global Bitcoin hashrate. Petro responded to that post, citing Paraguay as a model Colombia could follow.

Why Paraguay Matters Here

Paraguay reached the #4 spot globally for Bitcoin mining behind the United States, Russia, and China. The country produces roughly 43 EH/s of hashrate, driven by a surplus of approximately 3,480 MW between what its hydroelectric plants generate and what its 7 million residents consume. The engine is the Itaipu Dam on the Paraná River. Paraguay's electricity costs run as low as $0.033 per kWh, and the country consumes less than 25% of its share of Itaipu's total output, creating an enormous surplus of clean, renewable energy.

Paraguay's state power company ANDE launched the country's first state-led Bitcoin mining operation in early 2025, using confiscated mining hardware and surplus hydroelectric power. Private operators followed aggressively. HIVE Digital Technologies acquired Bitfarms' Paraguay operations in January 2025 and has since built its Yguazu campus to 300 MW of renewable capacity, with a 100 MW Phase 3 expansion targeting commissioning in Q3 2026.

Colombia's Energy Picture

Colombia's case rests on a different but comparable logic. A World Bank report found the country generates roughly 75% of its electricity from renewables, more than twice the global average. Colombia's energy mix is dominated by hydroelectricity, which accounts for between 55% and 80% of total generation.

The Caribbean coast is where new renewable capacity is concentrating. Solar build-out along the coast, particularly in Atlántico, Cesar, and Córdoba, delivered 54% of the country's added solar capacity in 2024, with irradiation above 4.5 kWh/m² per day. La Guajira, the department that includes Riohacha and borders Venezuela, holds the most wind potential. State planning agency UPME estimates La Guajira has 21 GW of wind power potential.

The challenge is that much of this energy is stranded. Delays to key transmission projects and lengthy community consultations impeded development, and the 500 kV Colectora transmission line connecting La Guajira to the national grid is years behind its original schedule. Bitcoin mining, which can operate near generation sites without long-distance transmission, could actually absorb that stranded power directly.

The Market Opening

There is a structural reason emerging markets can gain ground right now. US-based commercial miners are shifting capital toward AI and high-performance computing in search of higher margins. This creates an opening for countries with cheap, clean electricity to capture a larger share of the Bitcoin network's computing power.

Analysts like Hashlabs managing partner Jaran Mellerud have argued that Bitcoin mining gives developing countries a way to convert unused electricity into direct cash flow. For regions like Colombia's Caribbean coast, where renewable capacity is being built faster than grid infrastructure can absorb it, miners function as a flexible and immediate buyer of electricity.

What Petro's Proposal Does Not Solve

The timing creates a real obstacle. Petro's term ends in August 2026, leaving roughly three months. He is constitutionally barred from running again. Colombia's next presidential election is May 31. Regulatory inconsistency and limited long-term policy clarity introduce uncertainty for large-scale mining investment — a lesson visible in Paraguay's own history, where operators had to navigate shifting rules even as the energy fundamentals were strong.

Neither of the two leading presidential candidates, left-leaning Senator Iván Cepeda Castro and conservative lawyer Abelardo de la Espriella, has made significant public statements on Bitcoin or digital assets. Without policy continuity, foreign miners are unlikely to commit capital to long-term infrastructure based on one president's tweet.

There are also unresolved tensions with Indigenous communities. Petro proposed Wayúu co-ownership, which is both a meaningful recognition of land rights and an acknowledgment that past energy projects on the Caribbean coast have faced serious pushback from those same communities. Wind projects in La Guajira have faced lengthy community consultations that impeded development, and Bitcoin mining facilities would encounter the same process.

What Would Make It Work

Colombia has the energy fundamentals. The country is expected to close 2026 with more than 4.2 GW of installed renewable energy capacity, with over 1,000 MW preparing to begin construction this year alone. If the Colectora transmission line comes online and a future administration sets clear mining regulations, the Caribbean coast becomes a credible location for large-scale operations.

Paraguay took roughly five years to go from energy potential to becoming the world's fourth-largest mining country. Colombia would need similar patience, consistent policy, and direct engagement with the communities whose land the infrastructure would occupy. Petro's proposal identifies the opportunity correctly. Whether anyone follows through is a question the May 31 election will begin to answer.