Canadian listed mining company Bitfarms has announced an agreement under which the company will develop a 210 megawatt (MW) mining farm in Argentina. Bitfarms says it was able to negotiate a low electricity rate of $0.02 per kWh over the life of the contract.
Argentine bitcoin miner targets 210 MW capacity
Bitfarms (TSXV:BITF, OTC:BFARF) announced the company’s expansion into South America by signing a non-binding letter of intent for the construction of a 210 MW bitumen production facility.
According to Bitfarms, the purchase agreement went into effect in October 2020, and the park would have initially been around 60 MW in size. However, the agreement has since been significantly expanded, as a power purchase agreement with a private power producer in Argentina allows the company to purchase up to 210 MW of electricity at its discretion.
Bitfarms also claims that Argentina’s warmer climate helps the company mine bitcoins without needing an expensive liquid immersion cooling system. The company also announced that it would transfer a number of bitumen miners to the Argentine site. 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 former miners to the new data center. Older mines are less efficient than new ones, but their low energy costs and proven reliability will extend their economic life, the company said. This strategy will allow our old miners to continue to increase their operating cash flow and contribute to Bitfarms’ overall hash rate.
Bitfarms find fracture costs in Argentina 45% cheaper than in Quebec
In addition, the company made a comparison to determine the break-even point for BTC production in Quebec versus production in Argentina. The company estimates that the Argentine will save 45%.
Bitumen production in South America, with 210 MW of low-cost power, will contribute to the company’s growth in the fourth quarter. Achieve 8 ex-sachs per second (EH/s) by the first quarter of 2022. It will also diversify production geographically to reduce risk and serve as an effective hedge for Bitfarms against the next halving in 2024, Bitfarms said in a statement.
The company already has a presence in Cowansville, Farnham, Magog, St. John’s and St. John’s. Jacint and Sherbrooke, Quebec. Bitfarms plans to add four more turbines to its 1&2 capacity in Sherbrooke, a second in Cowansville, a second in Saint-Yacinthe and 5 MW in Saint-Jean-sur-Richelieu, a town located east of Monterey.
What do you think of Bitfarms’ installation of a 210 MW bitcoin mine in Argentina? Let us know what you think in the comments below.
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0.02 per kWh, halving by 2024, Argentina, Bitcoin (BTC), bitcoin mining, Bitfarms, BTC mining, BTC mining devices, Canada, Cowansville, Farnham, Magog, Next Generation, Quebec, St. John’s, Newfoundland and Labrador Jacint, Sherbrooke, South America
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