Bitfarms, a global bitcoin mining company, has started operations in its mega mining farm located in Argentina. The farm, launched on September 16, is currently generating 10 megawatts (MW) of mining power in the first phase and will expand its operations to be fully operational next year. Bitfarms estimates it will contribute 50MW to meet the company’s mining targets in 2023.
Bitfarms launches mining operations in Argentina’s mega-farm
Bitfarms, a Nasdaq-listed bitcoin mining company, has started mining operations in its mega-farm located in Argentina. The construction of the facility, which started in October 2021, has now reached an important milestone, allowing it to start operating and contributing to the hashrate of the Bitcoin network.
In this first phase, the installation is capable of producing 10 MW of energy to house the mining equipment. The company expects these facilities to accommodate multitudes of miners in the future, increasing the power output fivefold. Going forward, 50MW will contribute 2.5 exahash per second (EH/s) to the current mining power provided by the company. Construction of the farm was due 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, it will be its most modern and largest mining operation when completed. Bitfarms had previously advised that it would be hosting Antminer S19 Pro Hydro miners at this facility, units that feature water cooling for improved efficiency.
Context and history of the project
This event marks the beginning of the completion of this project, which was criticized at one time due to the energy crisis that Argentina suffered last year. In fact, the construction of this mega-farm caused concerns with Argentine regulators, who came to inquire about the nature of the project and the nature of the energy that would be used.
Bitfarms negotiated a private agreement with a supplier able to provide prices of $0.02.2 per kilowatt hour (kWh), a very competitive rate. However, even with this advantage, Bitfarms has expressed concern over the sudden drop in bitcoin prices in international markets. In June, Damian Polla, Managing Director of Bitfarm Latam declared this factor was the biggest challenge facing the mining industry in the short term.
Even so, the company continues to invest in upgrading and expanding its existing mining infrastructure. In July, the company announcement the completion of the second phase of the expansion of “The Bunker”, another mining facility the company operates, adding 18 MW to the power of the operation and increasing the company’s hashrate by 200 petahash per second ( pH/s).
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