Bitfarms Plans to set up a Mining Operation in Argentina
Bitfarms, which is one of the biggest BTC mining farms in the world, plans to set up a crypto mining data center in Argentina. The facility will be its largest one thus far. According to the announcement, part of the reason why the Canadian firm picked Argentina was its favorable climate. The company projects that it will generate over $650 million in mining revenues during its stay in the nation.
Details of the Argentinian Operation
Bitfarms is a publicly traded company that is based in Quebec. The Argentinian project will have a capacity of up to 210 megawatts. Bitfarms revealed that it had signed a non-binding memorandum in October 2020 to receive power at a rate of $0.02 per kWh as part of its plan to create a 60 MW Bitcoin mining farm. At current prices, the company predicts that it could generate up to $650 million in revenue.
The statement noted that due to the favorable weather in Argentina, the company did not need to utilize the costly liquid immersion cooling technology. Instead, mining rigs can be cooled using fans, as they cool them at their facilities in Quebec. The project will run for eight years, according to the initial contract. It expects operations to begin in early 2022 if everything goes as planned.
History of Bitfarms
Bitfarms was created in 2017. It is listed on the TSX Venture Exchange, which is a public venture capital marketplace with a focus on emerging firms. The company already has five industrial-scale operations that run on hydropower in Quebec. Using hydropower is an environmentally friendly alternative, which is good for the environment.
Bitfarms is currently ranked as the largest crypto mining operation in North America. However, it faces major competition from China-based mining operations. It is estimated that mining operations in China account for 65–75 percent of the total hash rate of BTC. Some of the reasons for this are the low cost of power in China and the ease of access to mining rigs, which are mainly made in China.
A major reason why Bitfarms may be expanding to Argentina is access to cheap hydropower. However, the nation is not known for its Bitcoin mining activity. That is in contrast to the nearby nation of Venezuela where the instability of the national currency has made BTC mining a lucrative business.
2021 has thus far been a great year for BTC mining. For instance, in March 2021, BTC mining revenues hit $1.5 billion. The high profitability was driven by the recent BTC price surge.
