- Bitfarms (BITF) has provided updates on its deal for a 210 MW Bitcoin mining data centre in Argentina
- The company signed an eight-year power purchase agreement with a utility-grade private power producer in Argentina
- During the first four years, the effective cost of electricity will be US$0.022 per kWh
- The company is in discussions with a construction company to design and build the Argentinian facility, which will be operational by early 2022
- The facility could generate approximately US$650 million in revenues or 11,774 Bitcoin priced at US$55,000 each
- Bitfarms is one of the largest, oldest and most cost-effective public Bitcoin mining operations in the world
- Bitfarms (BITF) is down 14.42 per cent and is currently trading at $4.39 per share
Bitfarms (BITF) has provided updates on its deal for a 210 MW Bitcoin mining data centre in Argentina.
On October 26, 2020, the company signed a non-binding memorandum of understanding to purchase electricity for US$0.02 per kWh with the plan to develop a 60 MW Bitcoin mining facility in Argentina.
The company has completed considerable due diligence and contractual work on the project during the past six months:
- Bitfarms has signed an enhanced power purchase agreement with a utility-grade private power producer in Argentina, pursuant to which the company may draw up to 210 MW of electricity at its discretion. The initial term of the contract is eight years. During the first four years, the effective cost of electricity will be US$0.022 per kWh
- The electricity contract does not involve any interconnection with the local power grid, which means the electricity cannot be curtailed during times of unusually high usage
- Bitfarms is in advanced contractual discussions with a construction company to design and build the electrical inter-connection, high-voltage electrical lines and transformers needed for its operations. The company aims to be mining Bitcoin in Argentina by early 2022
- Bitfarms plans to relocate a substantial number of its older miners to the new data centre. The low cost of electrical power and the proven reliability of these miners will extend their economic life
- A substantial portion of the recently ordered 48,000 MicroBT miners are earmarked for the new facility
The company estimates the new facility in Argentina could mine one Bitcoin at a break-even cost of US$4,125, a 45 per cent savings compared to its Quebec facilities.
At this cost, the new facility could generate approximately US$650 million in revenues or 11,774 Bitcoin priced at US$55,000 each.
Bitfarms is one of the largest, oldest and most cost-effective public Bitcoin mining operations in the world. It has a diversified production platform with five industrial-scale facilities in Quebec.
Bitfarms (BITF) is down 14.42 per cent and is currently trading at $4.39 per share as of 2:06 pm ET.