Bitfarms Starts The Largest Bitcoin Mining Operation In Argentina

Bitcoin mining giant Bitfarms started operating megafarms in Argentina. (Photo; Doc. South China Morning Post)

JAKARTA One of the giant Bitcoin mining company, Bitfarms, reportedly started opening its BTC mining operations in Argentina. The Megafarm was launched on September 16 yesterday. The construction of its own mining facility has started since October 2021.

With the completion of the construction of mining facilities in Argentina, Bitfarm is now officially operating and contributes hashrate to the Bitcoin network. In this first stage, this facility is able to produce 10 MW of energy to accommodate mining equipment.

Launching Bitcoin.com News, the company expects this facility to host many miners in the future, growing the power provided five times. In the future, 50 MWs will account 2.5 exahash per second (EH/s) for the mining power provided by the company today.

Construction of the fields is expected to be completed in September, but due to some delays, it is now expected to fully operate in mid-2023.

However, according to the company, this would be the most modern and largest mining operation when completed. Bitfarms has previously informed that they will host an Antminer S19 Pro Hydro miner at this facility, a unit that has a water conditioning feature for better efficiency.

Reasons for the Construction of Bitcoin Mining Facility

This event marks the beginning of the completion of this project, which was criticized for the energy crisis that Argentina experienced last year. In fact, the construction of this megafarm raised concerns among Argentine regulators, with questions coming about the project and energy to be used.

Bitfarms negotiates private agreements with providers capable of providing a price of 0.02.2 dollars per kilowatt hour (kWh), a very competitive cost. However, even with these profits, Bitfarms has expressed concern about the sudden drop in bitcoin prices in the international market.

In June, Damian Polla, General Manager of Latam Bitfarm stated that this factor (bear market) is the biggest challenge facing the mining industry in the short term. Even so, the company is still continuing its investment in modernizing and expanding existing mining infrastructure.

In July, the company announced the completion of the second phase of expansion in The bunker, another company-operated mining facility, adding 18 MWs to operating staff and to increase the company's hash rate by 200 petahashes per second (PH/s).

For information, Bitfarms is Canada's largest Bitcoin mining company. Founded for the first time in 2017, Bitfarms is a subsidiary of Backbone Hosting Solutions Inc. Now the mining company has listed on the stock exchange in the United States.