Canadian publicly traded Bitcoin mining company Bitfarms has announced a deal in which the company will develop a 210-megawatt mining farm in Argentina. According to Bitfarms, the company was able to achieve a low electricity price of $ 0.02 per kWh during the contract period.
The Argentina-based Bitcoin mining facility plans to acquire 210 MW of power
Bitfarms (TSXV: BITF, OTC: BFARF) has announced that it is expanding into South America after signing a non-binding Memorandum of Understanding to build a 210 MW Bitcoin mining facility.
According to Bitfarms, the purchase agreement began in October 2020 and the farm would initially be around 60 MW. Since then, however, the agreement has been “significantly improved” as the power purchase agreement with a private utility-quality generator in Argentina will allow the company “to purchase up to 210 MW of electricity at its discretion.”
Bitfarms also states that Argentina’s warmer climate is helping the company mine Bitcoin without relying on costly liquid immersion techniques. The company also says the company will be moving a number of bitcoin miners to the Argentine facility. In the first week of March, Bitfarms announced the acquisition of 48,000 next-generation Bitcoin miners.
“Bitfarms plans to move a significant number of its senior miners to the new data center. While the older miners are less efficient than the new miners, the low electricity costs and proven reliability of these miners extend their economic life, ”the company’s announcement said. “This strategy will allow our senior miners to continue to grow cash flow from operations and contribute to Bitfarms’ overall corporate hashrate.”
Bitfarms finds break-even costs 45% cheaper in Argentina than in Québec
Additionally, the company ran a comparison to determine the break-even cost of mining BTC in Québec versus mining in Argentina. The company estimates that the Argentine plant would bring the company “45% savings”.
Mining Bitcoin in South America with 210 MW of low-cost electricity will help the company achieve a target of 8 exahash per second (EH / s) for the fourth quarter of 2022, effectively protecting Bitfarms against the next halving event in 2024, ”the said Announcement of Bitfarms.
The company already has offices in Cowansville, Farnham, Magog, Saint-Hyacinthe and Sherbrooke, Québec. Bitfarms plans to expand Sherbrooke Activities 1 and 2 to four more expansions, Cowansville a second, Saint-Hyacinthe another, and Saint-Jean-sur-Richelieu, a town to the east of Montérégie, a 5 MW facility.
What do you think of Bitfarms on building a 210 MW Bitcoin mining operation in Argentina? Let us know what you think on this matter in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to submit an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.