Bitfarms, a global Bitcoin mining company, has started operations in its mining megafarm located in Argentina. Launched on September 16, the farm is currently generating 10 megawatts (MW) of mining power in the first phase and will scale operations to be fully operational next year. Bitfarms estimates that it will contribute 50 MW to meet the company’s mining targets in 2023.
Bitfarms launches mining in Argentinian Megafarm
Bitfarms, a Nasdaq-listed bitcoin mining company, has begun mining at its megafarm in Argentina. The construction of the facility, which started in October 2021, has now reached a milestone, making it possible to start operations, contributing hashrate to the Bitcoin network.
In this first phase, the facility is capable of producing 10 MW of energy to host mining equipment. The company expects these facilities to host a multitude of miners in the future, and quintuple the power delivered. In the future, 50 MW will contribute 2.5 exahash per second (EH/s) to the current mining power provided by the company. The farm’s construction was scheduled to be completed last September, but due to several delays, it is now expected to be fully operational by mid-2023.
However, according to the company, this will be its most modern and largest mining operation when completed. Bitfarms had previously informed that it will host Antminer S19 Pro Hydro miners in this facility, units that have water cooling for better efficiency.
Background and project history
This event marks the beginning of the completion of this project, which at one point was criticized due to the energy crisis that Argentina suffered last year. In fact, the construction of this megafarm raised concerns among Argentine regulators, as they made inquiries about the nature of the project and the nature of the energy that would be used.
Bitfarms negotiated a private agreement with a supplier capable of delivering rates of $0.02.2 per kilowatt hour (kWh), a very competitive fee. But even with this advantage, Bitfarms has expressed concern about the sudden drop in bitcoin prices in international markets. In June, Damian Polla, Bitfarm’s managing director for Latam, stated that this factor was the biggest challenge facing the mining industry in the short term.
Nevertheless, the company is still forwarding investments to modernize and expand its existing mining infrastructure. In July, the company announced the completion of the second phase of expansion at “The Bunker”, another mining facility the company operates, adding 18 MW of power to the operation and increasing the company’s hash rate by 200 petahash per second (PH /s).
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