Bitfarms to install 3,000 circuits in Paraguay to mine Bitcoin with hydroelectric power

RIO DE JANEIRO, BRAZIL – According to a press release by Canada-based mining farm operator Bitfarms, the signing of an agreement with power providers in Paraguay would result in the deployment of the equipment in the country.

The contract will run for 5 years, renewable annually, and will give Bitfarms access to 10 MW of hydroelectric power at a price of US$0.036 per kilowatt per hour (kw/h).

The 3,000 circuits would total 150 Petahash per second (ph/s) of power or capacity to mine Bitcoin, the company states in its release.

“If the site were fully operational today, it would be producing bitcoins at a cost of approximately US$7,850 per coin,” they note.

For the time being, the model of equipment to be used, the power company providing the service, and the region in Paraguay where the facilities will be located are unknown.

Paraguay has several dams and hydroelectric power plants, including Itaipu, shared with Brazil, one of the world’s largest and most powerful.

In fact, Paraguay is being considered as a potential energy haven for Bitcoin miners, which could outstrip other regions of the world given the industry’s preference to operate at a profit.

SUSTAINED BUSINESS GROWTH WITH BITCOIN MINING

Last August, Bitfarms, a company founded by Argentines, reached a capitalization of US$1 billion, making it a “unicorn” in terms of financial markets.

The company has been listed on Nasdaq since last June. Currently, Bitfarms’ valuation on Nasdaq has dropped to approximately US$915 billion.

In the same press release, Bitfarms’ growth expectations are clearly stated, indicating that by the first quarter of 2022 it expects to reach 3 exahashes of power and 8 exahashes by the end of that year.

By May 2021 Bitfarms had mined 1,000 BTC in total. By August 2021 it mined 2,102 BTC, according to the press release.

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