The Canadian publicly traded Bitcoin mining company Bitfarms announced an agreement to develop a 210 megawatt (MW) mining farm in Argentina. Bitfarms said the company was able to ensure a low electricity bill of US$0.02 per kilowatt-hour during the contract period.
Argentina’s Bitcoin mining facility aims to obtain 210 megawatts of electricity
Bitfarms (TSXV: BITF, OTC: BFARF) announced that the company is expanding into South America because it has signed a non-binding memorandum of understanding to build a 210 MW Bitcoin mining facility.
Bitfarms said that the purchase agreement dates back to October 2020, and the initial installed capacity of the farm was about 60 MW. However, since then, the agreement has been “significantly strengthened” because a power purchase agreement with a utility-level private power producer in Argentina will allow the company to “extract 210 megawatts of electricity at its discretion.”
Bitfarms also detailed that the warm climate in Argentina helps the company mine Bitcoin without relying on expensive liquid immersion cooling technology. The company also stated that it will relocate some bitcoin miners to factories in Argentina. In the first week of March, Bitfarms announced the acquisition of 48,000 next-generation Bitcoin miners.
“Bitfarms plans to relocate a large number of old miners to the new data center. Although the efficiency of the old miners is not as good as the new ones, the lower power costs and reliable reliability will extend their economic life.” “This strategy will enable us to Old miners continue to increase operating cash flow and contribute to Bitfarms’ overall company hash rate.”
Bitfarms finds that Argentina’s break-even costs are 45% cheaper than Quebec
In addition, the company made a comparison to find out the break-even cost of mining BTC in Quebec compared to mining in Argentina. The company estimates that the Argentine plant will enable the company to “save 45%.”
Mining Bitcoin with 210 megawatts of low-cost electricity in South America will help the company achieve its goal of 8 exahash per second (EH/s) in the fourth quarter of 2022. Bitfarms’ announcement emphasized.
The company already has operations in Cowansville, Farnham, Magog, Saint-Hyacinthe and Sherbrooke in Quebec. Bitfarms plans to expand Sherbrooke’s 1&2 business to four other expansions. Cowansville will carry out a second expansion, Saint-Hyacinthe will carry out another expansion, and the eastern city of Saint-Jean-sur-Richelieu in Montérégie will receive a 5 MW facility.
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