Bolivia has a Bitcoin mining problem that looks, on the surface, like a Bitcoin mining success story. The country’s hashrate surged 2,400% through early 2026, a number that sounds like cause for celebration until you understand what was fueling it: heavily subsidized natural gas priced at $1.30 per MMBTU, a fraction of the $8 to $12 per MMBTU that liquefied natural gas fetches on international markets.
Now, a different approach is taking shape. Italian energy firm Alps, working with local partner Qurubiqa, has begun reviving a dormant 127 MW gas-fired thermal plant in Cercado, Cochabamba, converting what was essentially a stranded industrial asset into a Bitcoin mining operation that runs on hard currency instead of government handouts.
How the model actually works
The plant in Cochabamba had been sitting idle, a casualty of the distortions between Bolivia’s official and market exchange rates. When your national currency is in freefall, operating a power plant that sells electricity denominated in that currency becomes a losing proposition.
Alps and Qurubiqa found a workaround. They structured the operation as a behind-the-meter, USD auto-consumption model. The mining rigs sit at the power plant, consume the electricity directly, and the entire transaction chain is denominated in US dollars rather than Bolivian bolivianos.
This channels actual dollar inflows into Bolivia’s economy, something the country desperately needs as it edges closer to net gas importer status within the next two to five years.
The deployment currently stands at 27 MW with a hashrate of 1.23 EH/s. The roadmap calls for scaling to 45 MW by the end of 2026, with the eventual goal of utilizing the full 127 MW capacity of the plant.
Alps secured direct power purchase agreements and regulatory exemptions to make the arrangement possible. The operation generates local employment alongside the hard-currency economic activity, a combination that gives it political durability under the incoming Rodrigo Paz administration, which has been reassessing prior energy policies.
Why Bolivia’s subsidy-driven mining was always fragile
Bolivia’s electricity grid runs roughly 70% on natural gas, and access to those subsidized rates has been narrowing as reserves deplete. Bolivia is on track to become a net gas importer within two to five years, which would fundamentally reshape the cost structure for every miner operating on cheap domestic fuel.
What this means for investors
The Alps-Qurubiqa model demonstrates a replicable template for mining in economically unstable jurisdictions. The behind-the-meter, dollar-denominated approach effectively insulates operators from currency devaluation and subsidy withdrawal. If other firms adopt similar structures, Bolivia could transition from a subsidy-dependent mining destination to one that attracts foreign direct investment on commercial terms.
The risk worth watching is execution at scale. Going from 27 MW to 127 MW requires sustained regulatory cooperation, reliable gas supply to the plant itself, and continued dollar-denomination flexibility. Bolivia’s gas reserves are declining, and even a plant that operates outside the subsidy framework still needs fuel. If the country’s import transition happens faster than projected, feedstock costs could rise substantially, compressing margins even for dollar-denominated operations.