Bitcoin mining behemoth Bitfarms has launched a new operation in Argentina, claiming a significant energy advantage.
The company operates in four countries and is one of the world’s largest mining operators, but the Argentina project is expected to have access to its cheapest energy.
“Based on current Argentine currency exchange rates and natural gas prices, the cost of power in Rio Cuarto is expected to be the lowest in Bitfarms’ portfolio, creating a significant advantage,” Bitfarms COO Geoff Morphy stated.
Last April, Bitfarms announced its new contract in the South American country, which was released Monday
“Argentina holds the second largest shale gas reserves in the world while also offering strong renewable energy potential,” Morphy explained. “We are uniquely positioned to expand globally and continue to take advantage of the region’s low-cost, surplus electrical generation capacity.”
While the location is appealing because Bitfarms’ founders live in Argentina, he noted that locating where there is abundant energy is a key corporate strategy.
“When we see areas with excess energy capacity that would otherwise be wasted,” Morphy explained, “we try to leverage that low-cost, surplus electrical generation capacity and contract power for longer terms at attractive rates, which benefits both Bitfarms and local energy producers.”
Based in Rio Cuarto, Cordoba, the new operation increased Bitfarms’ hash rate to 4.1 exahash/second (EH/s) from 3.9, according to a statement from the miner. The computational power used to mine a cryptocurrency is called the hash rate.
According to the announcement, the Rio Carto project consists of two warehouses; today’s operation turned on the first of two 50-megawatt (MW) buildings.
The company adds 10 MW of capacity, bringing total corporate capacity to 176 MW.
Bitfarms also stated that the site will be completed by the beginning of the second quarter of 2023.
At its other sites, the Canadian company mines Bitcoin using hydroelectric power.
Bitcoin mining uses computers to secure the network and create a new cryptocurrency.
It consumes much energy and is frequently carried out on a large scale with numerous machines.