Yes! Worms well known for their ability to digest shredded newspaper and turn it into great soil. It is just important to make sure there is a good balance of food scraps and newspaper, if it seems like they are not eating all the newspaper, add some more food scraps and give them some time to eat it before adding more newspaper.
Though it appears that shredded paper serves more usefulness as a bedding and a way to keep things moist in a compost pile, worms will in fact eat it, though I’m sure they prefer the same things we do!
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