Argentine Legislators Concerned About Bitfarms Mining Center

Argentine lawmakers require disclosure of the installation of the Bitfarms mining center and its compliance with government requirements.

In April, mining company Bitfarms signed an agreement with an Argentine electricity supplier to consume up to 210 MW for its new mining center. However, according to local media reports, MP Martín Berhongaray has submitted a resolution according to which the Ministry of Science, Technology and Industrial Innovation of Argentina, the Ministry of Environment and Sustainable Development of Argentina, and the Ministry of Economy of the country must disclose information about the installation of this facility.

Berhongaray is demanding that the government disclose what the terms of the deal are and whether Bitfarms has the necessary government approvals to consume electricity from a wholesale electricity market agent. He is also interested in whether a government subsidy will be provided for the consumption of electricity used, and if so, what are the sources of its financing and on what grounds it should be provided.

Legislators are confused by the fact that the location of the mining center is still a “mystery” to the public. It was only recently revealed that the facility will be located in a rural area. The Bitfarms management announced that the contract with the energy supplier in Argentina has been concluded for 8 years. For the first four years, the electricity cost for Bitfarms will be $ 0.022 per kWh. According to the company, 210 MW will be enough to support about 55,000 next-generation ASIC miners.

Bitfarms President Geoffrey Morphy added that with cheap electricity that will be available to the company for several years, Bitfarms will be able to make its business more profitable and viable in the short term. Recall that in the second quarter of 2021, Bitfarms’ revenue grew to $ 36.7 million, an increase of 396% compared to the same quarter last year.