Bitfarms Secures $21 Electricity Tariff
Date: 2023-11-17 Author: Dima Zakharov Categories: IN WORLD
Locking in Electricity Costs
Bitfarms, headquartered in Canada and engaged in Bitcoin mining, has confirmed a groundbreaking move in securing a fixed electricity cost for its operations in Argentina. The company recently inked a contract ensuring a steady rate of $21 per megawatt-hour for its facility located in Rio Cuarto. This contract is set to remain effective from November through April, leveraging seasonal decreases in natural gas prices in Argentina.
Impact on Operations and Future Projections
Jeff Morphy, President, and CEO of Bitfarms, expressed optimism regarding this agreement, anticipating a reduction in the overall blended electricity cost at the site to $25 per MWh by 2024. This strategic move is projected to subsequently decrease the average electricity expense across the entire network.
Strategic Move Ahead of Halving
This development comes as Bitfarms prepares for the upcoming halving projected to occur in April next year. The company's strategic maneuver in securing favorable electricity rates aligns with its proactive stance in navigating potential cost fluctuations in the market.
Financial Insights and Operational Scale
In its third-quarter earnings report, Bitfarms revealed a total electricity cost of $16,900 per mined Bitcoin. With an asserted park efficiency of 36 joules per terahash (J/TH) during the quarter, the average electricity cost for Bitfarms was estimated at around $45 per MWh.
Diverse Operational Footprint
Operating multiple facilities across Canada, the United States, Argentina, and Paraguay, totaling a capacity of 240 megawatts, Bitfarms has strategically expanded its operational footprint.
Scaling Operations in Rio Cuarto
According to Bitfarms' October update, the power capacity at the Rio Cuarto facility recently reached 54 megawatts, facilitating approximately 1.6 EH/s of installed hash rate, representing around 23% of Bitfarms' overall network.
