Construction of Bitfarms Argentine Expansion Has Started

October 12, 2021

Nasdaq listed Bitcoin mining company Bitfarms, announced their latest expansion in Argentina last week. Construction for a mega bitcoin mining farm which will accommodate 55,000 miners is under way and is expected to be finished by next year.

The facility will be powered through a contract with a private power company after an agreement was signed back in April. The farm will bring more than 210 megawatts of infrastructure capacity, which reported has a mining power of 1.4 exahash per second.

Bitfarms Chief Executive Officer, Emiliano Grodzki commented on their expansion:

“Our new high-production facility in Argentina, which is expected to accommodate over 55,000 miners upon completion, will greatly expand our capacity and global footprint.”

Grodzki further noted that with the new facility, the company is able to meet its target of eight exahash per second by the end of next year

When it comes to their choice for Argentina, Grodzki pointed to the favorable conditions the country offers. Their mining operations will be located inside warehouses of their partner power company. The deal with the power company is signed for an eight-year period. Grodzki added:

“The Argentina facility is planned to produce Bitcoin using power at the attractive rate of just US 2.2 cents per kilowatt hour, substantially reducing our already low cost of mining Bitcoin.”

Bitfarms had started its Argentina mining operations in October of 2020 after signing a memorandum of understanding. A “favorable year-round climate” for the facility as well as the option “provide geographic production diversification to reduce risk” weight on the decision.

Mining companies are all on the lookout for new locations offering the best conditions for their operations and expansion. Abundant and cheap energy is key for them to swoop up high profit margins and keep shareholders happy. Add green renewable energy to the mix and there is a winning combination that will keep everyone satisfied.

Q2 earnings for Bitfarms were sensational, with sales up 396% year-over-year. Its quarterly sales added up to $36.7 million while recording a net loss of $3.7 million for the period.

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Author: Peter Siu

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