Canadian publicly traded bitcoin mining company Bitfarms has announced a deal whereby the company will develop a 210 megawatt (MW) mining company in Argentina. Bitfarms says the company was able to secure a low electricity tariff of $ 0.02 per kWh during the contract period.
Argentina’s Bitcoin mining facility aims to acquire 210MW of power
Bitfarms (TSXV: BITF, OTC: BFARF) has announced that the company is expanding into South America as it has signed a non-binding memorandum of understanding to build a 210 MW bitcoin mining facility.
Bitfarms says the purchase agreement started as early as October 2020 and the farm would initially be around 60 MW. Since then, however, the agreement has “significantly improved”, as the power purchase agreement with a private utility electricity producer in Argentina will allow the company to “take in up to 210 MW of electricity at its own discretion”.
Bitfarms also indicates that Argentina’s warmer climate is helping the company to mine bitcoin without relying on expensive liquid-immersed cooling techniques. The company also says the company will move a number of bitcoin miners to the Argentina facility. During 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 older miners to the new data center. Although the older miners are less efficient than the new miners, the low cost of electricity and the proven reliability of these miners will extend their useful life, ”the company announced. “With this strategy, our older miners can continue to contribute to the cash flow from operations and contribute to Bitfarms’ overall hashrate.”
Bitfarms finds that break-even costs in Argentina are 45% cheaper than in Quebec
Furthermore, the company did a comparison to find out the cost recovery costs for the mining of BTC in Québec as opposed to the mining in Argentina. The company estimates that the Argentine facility would provide the company with “savings of 45%”.
Mining bitcoin in South America with 210MW of cheap power will help the company reach a target of 8 exahash per second (EH / s) by Q4 2022. “It also aims to provide geographic production diversification to reduce risk and serve as an effective hedge for Bitfarms by the next halving in 2024, ”the Bitfarms announcement emphasized.
The company already has offices in Cowansville, Farnham, Magog, Saint-Hyacinthe and Sherbrooke, Québec. Bitfarms plans to expand Sherbrooke Operations 1 & 2 to four more expansions, Cowansville will see a second, Saint-Hyacinthe will see another and Saint-Jean-sur-Richelieu, a town to the east of Montérégie, will see a 5 MW facility.
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