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Bitfarms Ltd. has started development on a new 50-megawatt (MW) Bitcoin mining facility in Paraguay, the company announced on August 7, 2023. The farm will be located in Paso Pe near Bitfarms’ existing mining operations in Villarrica and is expected to be fully operational in the first quarter of 2024.
Bitfarms to Pioneer Hydro-Cooled Mining in Paraguay With New 50 MW Facility; Prepares for 2024 Bitcoin Halving
The announcement comes just weeks after Bitfarms (Nasdaq: BITF) secured 150 MW of hydropower contracts in Paraguay. According to Bitfarms CEO Geoff Morphy, the company chose Paraguay for expansion due to low building costs and fast construction timelines.
“Achieving high operating efficiencies while minimizing capex is an overarching goal in our global growth strategy heading into next year’s halving,” said Morphy. “Based on our experience in the jurisdiction, Paraguay affords both low building costs and fast time to completion.”
The new facility will consist of a 50 MW substation, a 30 MW air-cooled warehouse, and 20 MW of hydro-cooled mining containers from Microbt. Bitfarms will install 1,920 of Microbt’s new M53S+ miners in the containers, which are specially designed for immersion cooling.
The miners and infrastructure are being purchased entirely with vendor credits, significantly reducing Bitfarms’ cash outlay. According to Bitfarms Chief Mining Officer Ben Gagnon, the M53S+ miners will produce 675 PH/s at an efficiency of 28.5 W/TH, making them some of the most efficient miners in Bitfarms’ fleet.
This marks Bitfarms’ first foray into hydro-cooled mining, a technology that Gagnon says has the potential to be less expensive than traditional immersion cooling. The company believes rapid expansion in Paraguay highlights Bitfarms’ strategy of pursuing low-cost power sources to improve profitability, especially heading into the Bitcoin halving in 2024.