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Bitfarms, a bitcoin mining company, announced last week that construction of a mega bitcoin mining farm in Argentina is underway. The facility, which is designed to accommodate 55,000 miners, will be completed by next year. It’s yet another signal that mining companies are looking for new areas with favorable conditions and cheap energy to migrate to, including places like Texas and El Salvador.
Bitfarms expands in Argentina
Bitfarms, a bitcoin mining company listed on the Nasdaq, announced that it had started building what will be a mega bitcoin mining farm in Argentina last week. The company says the facility will be able to supply thousands of miners with electricity guaranteed by a contract with a private power company. The farm will provide more than 210 megawatts of infrastructure capacity to the company, which said it had an extraction power of 1.4 exahash per second in September.
Regarding the construction, Emiliano Grodzki, CEO of Bitfarms, said:
Our new high production facility in Argentina, which is expected to accommodate over 55,000 miners when completed, will significantly increase our capacity and global footprint.
Grodzki noted that this facility will help the company meet its goal of eight exahashs per second by the end of next year.
Argentina’s favorable conditions
Grodzki also highlighted the reasons the company chose Argentina. The farm will be built in warehouses inside the power company providing the power, creating an ideal location for Bitfarms. Bitfarms has signed an eight-year 210 MW contract that guarantees the supply of electricity at a very low price. Grodzki explained:
The Argentine facility is expected to produce Bitcoin using electricity at the attractive rate of just 2.2 US cents per kilowatt hour, significantly reducing our already low cost of mining Bitcoin.
The installation is already under construction with an Argentinian company called Proyectos y Obras Americanas SA (“PROA”), which will lay the necessary electrical structure to supply the installation. Bitfarms is just one of the mining companies looking for new locations with favorable conditions to grow, and Argentina is on this list mainly due to its abundant and cheap energy in some areas. Bitfarms took the opportunity to choose a region where energy is abundant and demand low. Other companies could follow suit in the near future.
What do you think of the construction of Bitfarms’ mega bitcoin farm in Argentina? Tell us in the comment section below.
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