Bitcoin Miner Bitfarms Expands Operations in Paraguay After Securing 2 Hydropower Contracts

Bitcoin miner Bitfarms (BITF) has secured two power purchase agreements in Paraguay to add up to 150 megawatts (MW) of hydropower capacity.

Bitfarms said on Wednesday that one deal, worth up to 50 MW, is located in Villarrica, close to where Bitfarms already has operations, while the second deal, worth up to 100MW, is located in Yguazu, close to the Itaipu hydroelectric power plant.

“Paraguay has access to an abundance of surplus renewable power, and these acquisitions secure valuable, yet limited, sustainable energy contracts while broadening our foothold in a resource-rich country,” Geoff Morphy, CEO of Bitfarms, said in a statement.

Bitfarms plans to start the construction in Villarica in the first quarter of 2023, with the construction of a substation first and a mining facility later. In Yguazu, on the other hand, the company has the opportunity to build a new farm of up to 100 MW, although the starting date has yet to be determined.

In both locations, Bitfarms said the price per kilowatt hour (kWh) will be $0.039 before value-added tax and wouldn’t be adjusted for inflation.

In May, Bitfarms announced that it accelerated its stated timeframe for reaching 6 exahash/second (EH/s) of computing power by the end of the third quarter, and its per-share loss narrowed significantly on a quarter-by-quarter basis.

Bitfarms currently has 11 farms, which are located in Canada, the United States, Paraguay and Argentina.