Toronto Stock Exchange (TSXV) -listed Bitfarms has signed an agreement with a private electricity supplier in Argentina to consume up to 210 MW of electricity in a data center for bitcoin mining.
The agreement is for eight years. During the first four years, the effective cost of electricity will be $ 0.022 per kWh.
After the final deployment of the project, the breakeven level of bitcoin mining will decrease by 45% - from $ 7,500 at the end of the fourth quarter of 2020 to $ 4,125 at the current network complexity parameters.
Bitfarms estimates that 210 MW is enough to power 55,000 latest generation miners.
Electricity supply is planned directly from the generating facility without connection to the local distribution network. This will guarantee the uninterrupted operation of the mining center during peak demand values with power outages.
Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding
The agreement expands on the memorandum of understanding signed in October 2020. This document assumed the provision of electricity at a price of ~ $0.02 per kWh for the newly created 60 MW Bitcoin mining center.
The impetus for the expansion was the climate that is comfortable for miners all year round. It eliminates the need to install expensive immersion cooling equipment.
The facility is scheduled to be completed by early 2022. The new data center will provide geographic diversification and reduce risks ahead of a new halving in 2024.
Bitfarms plans to host less efficient miners in Argentina. Due to cheap electricity tariffs, this equipment will continue to generate cash flow and support the company's hashrate. The 48,000 ASIC devices ordered in March will also be installed in the mining center.
Trending: Finder: Bitcoin could hit $80,000 by 2025
By the end of 2021, the company expects to increase the hash rate to 3 EH / s, by the end of 2022 - to 8 EH / s.
Recall that in April, a competitor to Bitfarms from Vancouver, DMG Blockchain Solutions, acquired 3,600 ASIC miners for Bitcoin mining.
On April 16, the hash rate of the leading mining pools for the first cryptocurrency fell sharply amid problems with the supply of electricity in several provinces of China.