Bitfarms will launch a 100MW mining farm in Paraguay in the second half of the year

What’s new? Mining company Bitfarms announced the purchase of a land plot in Paraguay for the construction of a 100 MW farm. The facility is expected to be built in the second half of this year. By its completion, the company’s total hashrate could increase to 21 EH/s, subject to the exercise of an option to purchase additional T21 units from the manufacturer Bitmain.

Press release

What else is known? The land plot is located near the city of Yguazu and the Itaipú Dam, the third-largest hydroelectric power plant in the world with a capacity of 14 GW. Thus, bitcoin mining at the site will be entirely powered by a renewable energy source. According to Bitfarms President and CEO Geoff Morphy, once this farm is up and running, the share of green energy in the company’s operations will reach 85%.

He added that Bitfarms aims to improve hashrate and energy efficiency, as well as reduce the cost of mining 1 BTC in preparation for the upcoming halving on the Bitcoin network.

Halving is code’s embedded cut in half of the reward to miners for a mined block on the blockchain, which occurs approximately every four years. Initially, miners received 50 BTC; on November 28, 2012, the number dropped to 25 BTC, on July 9, 2016, to 12,5 BTC, and on May 11, 2020, to 6,25 BTC. In April 2024, the award will be cut to 3,125 BTC.

Founded in 2017, Bitfarms, in addition to mining bitcoins itself, also leases computing power to mining pools. It currently operates 11 data centers (in various stages of deployment, including operational and under construction) in Canada, the US, Paraguay, and Uruguay, using mostly green electricity.

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The company’s shares are traded on the US Nasdaq stock exchange under the ticker BITF. As of January 25, the price of one security is $2,02 (+1,49% for the day). At the same time, the price of BITF has fallen by 39% since the beginning of the year.

In November, Bitfarms purchased 35 888 T21 miners worth $95,5 million, and in August began construction of a 50 MW data center in the Paraguayan city of Villarrica.