Brazil Waives Import Tariffs on High‑Efficiency Bitcoin Miners to Unlock Renewable Power
Brazil’s Foreign Trade Council has exempted import tariffs on high-efficiency SHA‑256 Bitcoin mining hardware (≥200 TH/s and <20 J/TH) through January 31, 2028 (Resolução GECEX 861). The decision removes customs duty—though other taxes remain—lowering upfront costs for professional mining operators who meet the technical criteria. Days after the waiver, French state-owned energy company Engie said it is evaluating using surplus generation from its 895 MW Assu Sol solar plant in northeastern Brazil for Bitcoin mining, aiming to monetize curtailed renewable output. Brazil faces significant curtailment, especially in the northeast: wind projects may lose ~32 TWh between Oct 2021–Sep 2025 (roughly 6 billion reais / ~$1.2bn). Mining can act as flexible demand to consume otherwise-wasted electricity, improving plant revenue. Profitability hinges on device efficiency, BTC price and local electricity rates; example device (200 TH/s, <20 J/TH) yields about $6.81/day while consuming 96 kWh, breaking even near $0.071/kWh (370 BRL/MWh). Barriers include high capital costs, banking/financing constraints, possible future reductions in curtailment if transmission is upgraded, and uncertainty whether the tariff waiver will be extended after 2028. Policy is targeted—not a nationwide mining strategy—and primarily benefits operators with access to advanced ASICs and project-level power arrangements. Traders should watch hardware supply, Engie and other energy producers’ pilot outcomes, local electricity pricing, and any extension or broadening of the tariff exemption—factors that could affect institutional mining capacity and BTC sell pressure.
Bullish
The tariff waiver reduces upfront capital costs for professional, high-efficiency miners, improving the economics of institutional-scale operations in Brazil. Coupled with energy players like Engie exploring curtailment monetization via mining at the 895 MW Assu Sol plant, this could expand low-cost, renewable-powered mining capacity. Increased institutional mining capacity tends to be bullish for Bitcoin by supporting network hashrate growth and signalling long-term demand from miners who may hold BTC as treasury assets. Near-term effects are mixed: new mining capacity can increase operational selling for equipment payments or hedging, but more renewable-powered, lower-cost miners reduce forced sales during price drawdowns. Risks that could mute the bullish impact include limited hardware supply, high financing costs, potential transmission upgrades that reduce curtailment (and thus mining attractiveness), and the temporary nature of the tariff exemption (expires 2028). Historically, policy incentives and energy‑industry pilot projects (e.g., renewable curtailment + mining pilots in North America) have led to gradual increases in localized mining capacity and attracted institutional participants, supporting network security and positive sentiment over months to years rather than immediate price spikes. Traders should monitor hardware shipments, Engie’s pilot decisions, local power prices, miner balance sheets and any regulatory updates—short-term volatility possible, longer-term structural support for BTC issuance and institutional demand likely.