Bitfarms signs contracts and commenced construction of a 210-megawatt facility

Bitfarms, a global Bitcoin mining company, signed engineering, procurement and construction (EPC) contracts and commenced construction of a production facility in Argentina. As previously announced in April 2021, the new facility is expected to add up to 210 megawatts (MW) of infrastructure capacity in 2022 at a contracted rate of US 2.2 cents per kilowatt hour with electricity provided by a private power company.

“Our new high-production facility in Argentina, which is expected to accommodate over 55,000 miners upon completion, will greatly expand our capacity and global footprint. Combined with the expansion in Quebec, Canada and our planned build-out in Paraguay, we are positioned to achieve our corporate target of 8 exahash per second by year-end 2022,” said Emiliano Grodzki, CEO of Bitfarms. “The Argentina facility is planned to produce Bitcoin using power at the attractive rate of just US 2.2 cents per kilowatt hour, substantially reducing our already low cost of mining Bitcoin. Leveraging our expertise and corporate infrastructure, as well as that of our highly respected construction partners, is part of our strategy to grow faster and more efficiently by mining Bitcoin with improved profit margins.”

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Proyectos y Obras Americanas S.A. (“PROA”), which has been engaged to provide engineering, procurement, and construction services for the Argentina facility, has specialized in utility-grade electrical infrastructure and civil construction for almost 60 years. Its relevant expertise includes the design and construction of electrical interconnections, high voltage electrical lines, and transformers needed for operations of the size of the planned Argentina facility. In addition to PROA, Bitfarms has also engaged Dreicon S.A. as an independent engineering firm to oversee construction, quality control and project milestones for the company’s projected buildout schedule.

The New Argentina Facility

Bitfarms’ new production facility will be housed in four warehouse-style buildings inside the gates of a private power company. In light of reduced demand in the rural location where the power company is located, in April 2021 the parties signed a mutually beneficial eight-year, 210 MW power purchase agreement to power the facility. To date, most of the engineering design and development work is complete and site preparation has already begun.

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The facility in Argentina is expected to accommodate over 55,000 miners, including many of the 48,000 latest-generation MicroBT miners the company purchased in early 2021. This adds to the approximately 21,500 miners currently online at Bitfarms.

“With five mining facilities up and running in Quebec, Canada, we are building on our proven design, technology expertise and implementation track record, with our sixth, and largest, planned farm in Argentina,” concluded Grodzki. “The management and technology teams are working closely together on this strategic expansion, and several key Argentine hires have already been made.”