Bitcoin mining company BitFarms announced last week that construction of a mega bitcoin mining firm is underway in Argentina. Built to accommodate 55,000 miners, the facility will be completed by next year. This is another indication that mining companies are looking for new areas to relocate to favorable environments and cheaper energy, including locations like Texas and El Salvador.
Beatforms are widespread in Argentina
Nasdaq-listed bitcoin mining company BitForms announced last week that it would build a mega bitcoin mining firm in Argentina. The company says the facility will be able to supply thousands of miners with protected electricity through an agreement with a private power company. The firm will provide more than 210 megawatts of infrastructural capacity for the company, which has a mining capacity of 1.4 XHz per second in September.
Regarding the construction, Emiliano Grodsky, CEO of Bitforms, said:
Our new high-production facility in Argentina, which is expected to handle more than 55,000 mines upon completion, will greatly expand our capacity and global footprint.
Grodsky noted that the facility will help the company achieve its goal of eight exhalations per second by the end of next year.
Favorable conditions in Argentina
Grodsky also mentioned the reasons why the company chose Argentina. The farm will be built in warehouses inside the power supply company, which will create a great location for bitforms. BitForms has signed an eight-year 210 MW contract that ensures power supply at very low prices. Grodzki explained:
The Argentina facility plans to produce bitcoin using an attractive rate of electricity at just 2.2 cents per kilowatt hour, which has significantly reduced our already low cost of bitcoin mining.
The facility is already under construction with an Argentine company called Projectos y Obras Americanas SA (“PROA”), which will install the electrical structures required for installation. Bitforms is one of the few mining companies that offers favorable conditions for the expansion of new sites, and Argentina is on that list, mostly because of its abundant and cheap energy in certain regions. Bitforms have taken advantage of this, choosing an area where energy is plentiful and demand is low. Other companies may follow suit in the near future.
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