Mining company Bitfarms has signed a contract with an Argentina electricity supplier to consume up to 210 MW of electricity for its new mining facility.
According to Bitfarms, the company entered into an eight-year contract with a private Argentine electricity producer at a cost of $ 0.022 per kWh for electricity for the first four years. Last October, Bitfarms signed a memorandum of understanding to establish a 60 MW BTC mining center in Argentina.
The company notes a “favorable year-round climate” for the facility, which, according to the statement, will “make a significant contribution” to achieving a hash rate of 8 Eh / s by the end of 2022 and “ensure geographic diversification of production to reduce risk.” Bitfarms President Geoffrey Morphy said:
“The planned expansion in Argentina will play into the hands of our shareholders and provide the scale and efficiency we have been aiming for. With cheap electricity available to us for many years, we can improve our margins in the short term and ensure we have a viable business that we can count on before and after the next halving in 2024. ”
According to Bitfarms, “210 MW is sufficient to support approximately 55,000 next-generation ASIC miners, which could generate approximately $ 650 million in revenue or 11,774 BTC based on current difficulty levels and a BTC price of $ 55,000.” Bitfarms currently owns five mining centers in Canada with a total capacity of 69 MW. The company is also preparing for a listing on the Nasdaq.
Bitfarms has acquired tens of thousands of ASIC miners in recent months as part of its broader expansion efforts. In early March, the company purchased another 48,000 cryptocurrency mining devices from MicroBT, which will begin shipping in January 2022. In a recent statement, the company noted that “a significant portion” of these devices are intended for an Argentine enterprise.
Bitfarms announced last Friday that it has acquired another 1996 MicroBT ASIC miners, which will be installed by August and will provide an additional 160 Px / s once connected to the network. According to Ben Gagnon, director of mining operations at Bitfarms, the North American markets have never had as much free capital as they did after the coronavirus-related restrictions were imposed. He said:
“How do you invest in such a market? Bitcoin mining is the perfect candidate. It has a quick payback, capital intensity, can use a turnkey infrastructure and create an asset for which you do not need to look for clients. “
