Nacho Pauls, Chief Commercial Officer at Ocean, sat down at Mining Disrupt Dallas to discuss a topic that often gets lost in the technical details of hashrate and energy costs: the quiet, dangerous art of finding land that will still be legally yours in five years. When the session was recorded on November 12–14, 2025, Bitcoin traded at $104,994; by October 13, 2026 it was $83,221. His argument holds either way. He said a miner’s survival depends less on finding the cheapest kilowatt-hour and more on working through the geopolitical and legal minefields of emerging markets.
From Meatpacking Factory to Mining Site
Pauls’ entry into the industry was not a calculated pivot but a chaotic immersion. He recalled his time in 2018, when he and a partner bought a failing meatpacking factory. They filled it with any equipment that resembled a miner, driven by industrial energy rates that were, in his words, "pretty cheap." The operation was successful for a brief window, but when the 2018 crash hit, his partner, less of a believer, panicked and they sold everything, including the Bitcoin they had accumulated. Pauls described the loss as a heartbreak that sent him away from the industry for a few years, only to return during the pandemic when he helped Penguin build a 160-megawatt high-voltage substation from the ground up in 10 months.
We were paying you know industrial rates so it's pretty cheap energy and we were mining we were making [a killing]
Nacho Pauls · 1:08
That early experience shaped his view of risk. He noted that the industry is built by people who "pick up a phone, show up, and keep grinding." For Pauls, this intensity is not just a personality trait but a survival mechanism. Having joined Ocean six months before the session, he brought with him a network of contacts and a philosophy that the pool should be more than a service provider. It should be a resource hub. He emphasized that Ocean’s role is to support clients through the chaotic phases of site construction and operation, providing a toolbox that includes site sourcing, equipment procurement, and operational advice.
The Ethiopian Warning
The conversation shifted to the allure of African energy markets. Pauls warned against the seduction of low prices in jurisdictions with unstable governance. He pointed to Ethiopia as a prime example of a risky environment. While the energy costs are attractive, the legal protections are virtually nonexistent. He had warned friends who were rushing into the country, noting that the government could simply seize assets. He described the nightmare scenario where miners spend years in litigation while their equipment is mined to the ground.
They can go into your site, take over, and you're done
Nacho Pauls · 7:14
He contrasted this with the opportunities in Kenya and North Africa, such as Egypt and Morocco. These regions offer a combination of solar, wind, and grid energy that can reach competitive prices, provided the miner is "boots on the ground." Pauls emphasized the need to understand the local political structure and to draft Power Purchase Agreements that are solid but difficult to circumvent. That means boots on the ground: meeting people, shaking hands with politicians, and learning how the government is structured and who is coming next.
The Gardener’s Mindset
The host joked that the pool boy had become a gardener, and the label fits Pauls’ belief that small, physical adjustments to the environment can yield significant operational gains. He shared a specific tactic used in Texas: planting grass around cooling towers and wetting it every three hours. This simple measure lowers the temperature of the air entering the towers, preventing overheating and extending the life of the machines. He explained that this is an extra little thing that nobody pays attention to but can save machines from breaking due to overheating.
Legal structure matters as much as hardware. In Brazil, Pauls noted, import taxes can reach 80%, which he called impossible, but a good legal team and structure can bring that down to between 5% and 14%.
Canada’s Gas Advantage and the HPC Competition
When asked where he would go if starting mining today, Pauls’ answer was unequivocal: Canada, specifically Alberta. He cited the friendly political climate, with officials who are Bitcoiners, and the abundance of natural gas. The gas infrastructure allows miners to generate their own power, insulating them from grid volatility and high electricity prices. However, he warned that gas mining is a different beast, requiring redundancy and maintenance schedules that are like running a car engine 24/7: parts wear out and need a two-hour swap window.
if I were to start mining today, my focus would be Canada, Alberta
Nacho Pauls · 9:08
Pauls also addressed the rising competition from High-Performance Computing and AI data centers. These entities are willing to pay premium prices for power, signing 20-year PPAs that miners cannot match due to the uncertainty of Bitcoin’s long-term performance. This creates a land grab where miners are forced to be more creative. Pauls suggested that miners can use their flexibility to their advantage, moving equipment to different sites as HPC facilities are built. "We are the means to an end," he said: mining can use the energy infrastructure that can bridge the gap while more permanent AI facilities are constructed.
Paper Wallets
The session closed on a personal note. The host recalled moving less than $10 to a paper wallet and feeling, for the first time, that he truly owned it. Pauls’ moment came in 2019 in Argentina, where he had been broke twice because of the government: instead of opening the coffee shop his wife wanted, he put their savings into Bitcoin on a paper wallet, since hardware wallets were impossible to get there. She was furious for a year. Now, he said, she has her own wallet and orange-pills people herself.
this is real money. Nobody can touch it
Nacho Pauls · 30:05
Pauls’ advice is simple: survive by understanding the ground you stand on. The next Mining Disrupt is March 22 to 24, 2027, in Irving, Texas.