Canadian mining firm Bitfarms strengthens ties in Argentina
Canadian publicly traded mining firm Bitfarms is expanding its current operations in Argentina. The company has signed an agreement under which it can draw up to 210 MW of electricity for its planned mining facility in Argentina. The 210 MW capacity will be able to power roughly 55,000 new generation mining machines.
Bitfarms has signed a contract with a private Argentinian power producer for a period of eight years and made the announcement on Monday.
Securing a viable operation
Bitfarms had started its Argentina mining operations in October of 2021 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.
“Our planned expansion in Argentina is a continuation of our experience and our desire to deliver value to shareholders,” said Bitfarms President Geoffrey Morphy. “The strategic expansion provides the scale and efficiency that we were seeking.”
“With considerable low-cost power available to us over many years, we can enhance our margin performance in the short term and ensure we have a viable operation on which we can count through and after the next halving event in 2024,” Morphy added.
According to Bitfarms’ announcement, with an effective cost of $0.022 per kWh for the electricity for the first four years, the 210 MW will fuel 55,000 new-generation miners. These mining machines have the potential to generate approximately $650 million of revenues or 11,774 BTC, based on current difficulty levels and a bitcoin price of $55,000.”
Renewable energy
Power consumption and its origins is a hot topic when it comes to mining of cryptocurrencies. Many attempts have been made at shaming the industry, yet most claims have been debunked. Fact is that renewable and clean sources of energy are considered as the “only” way forward. Mining operations have a role to play as a catalyst in the world’s transition to renewable energy. With an abundance of natural resources, Pakistan is a good example of a nation leading the way.
Bitfarms is currently running five industrial-scale hydroelectric facilities in Québec, Canada Combined the five produce deliver a capacity of 69 MW.
Prior to the finalization of the Argentinian partnership, Bitfarms had purchased tens of thousands of bitcoin mining machines. This in preparation of its wider expansion efforts. The majority of the machines are destined for Argentina and the company’s operations in the country should be up and running soon.
Bitfarms stock is tradable on the Toronto Stock Exchange, The company is also in preparation of a listing on the Nasdaq.
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Source: igaming
