Bitfarms, a bitcoin mining company, announced last week that construction is underway for a mega bitcoin mining farm in Argentina. The facility, which is designed to accommodate 55,000 miners, will be finished by next year. This is another sign that mining companies are seeking new areas where they can find low-cost energy and favorable conditions to move to.

Bitfarms Expands to Argentina

Bitfarms, a Nasdaq-listed bitcoin mining company, announced it started building what will be a mega bitcoin mining farm in Argentina last week. According to the company, this facility can power thousands of miners using power obtained through a contract with private power companies. The farm will provide more than 210 megawatts of infrastructure capacity for the company, which reported having a mining power of 1.4 exahash per second in September.

About the construction, Emiliano Grdzki, CEO at Bitfarms stated:

Our new high-production facility in Argentina, which is expected to accommodate over 55,000 miners upon completion, will greatly expand our capacity and global footprint.

Grodzki stated that this facility will allow the company to achieve its goal for eight exahash per minute by the end next year.

Argentina’s Favorable Conditions

Grodzki further explained the reasons the company chose Argentina. The farm will be built in the warehouses of the power company that provides the energy. This creates a great location to Bitfarms. Bitfarms signed an eight-year, 210 MW deal that secures power provision at a very low price. Grodzki explained:

The Argentina facility will produce Bitcoin at a very attractive rate of US 2.2 cents per Kilowatt Hour. This significantly reduces the cost of mining Bitcoin.

The facility is currently under construction with Proyectos y Obras Americanas S.A (“PROA”) in Argentina. This company will lay the electrical structures necessary to power the installation. Bitfarms is just one of the mining companies seeking new locations offering favorable conditions for expanding, and Argentina is on that list, mostly due to its abundant and cheap energy in certain regions. Bitfarms made the most of this by choosing an area where there is a lot of energy and low demand. In the near future, other companies may follow their lead.

What do you think about the Bitfarms mega bitcoin farm construction in Argentina? Please leave a comment below.

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