FameEX Hot Topics | Bitcoin Miner Bitfarms Expands Paraguay Operations with 100 MW Hydropower Agreement

On Tuesday, the Nasdaq and Toronto Stock Exchange-listed Bitcoin mining company, Bitfarms, announced a significant expansion of its operations in Paraguay. The company secured an additional 100 megawatts (MW) of power from Paraguay’s state-owned utility firm, ANDE, which will double the capacity of its hydro-powered Yguazu site. This increase is expected to make the facility fully operational with the new capacity by 2025.

Bitfarms, trading under the ticker BITF, highlighted that this new hydropower acquisition would supply low-cost electricity at $0.039 per kilowatt-hour (kWh). One of the key benefits of this arrangement is that the cost is fixed and not subject to inflationary increases. Construction efforts, including the high-voltage interconnection to the ANDE substation, began at the Yguazu site in March.

Ben Gagnon, Bitfarms’ Chief Mining Officer, expressed that the additional 100 MW aligns with the company's growth strategy for the first half of 2025, while also ensuring that their 2024 target of reaching 21 EH/s remains on schedule. “Expanding Yguazu to 200 MW is projected to increase our megawatts under management by 23%, from 428 MW to 528 MW in 2025,” Gagnon stated. He emphasized that this expansion is integrated into their existing construction plans, which allows for the amortization of development costs across a wider infrastructure base, effectively reducing overall costs per megawatt.

Damian Polla, Bitfarms’ General Manager for LATAM, noted that the acquisition of the additional megawatts from ANDE did not incur any direct acquisition costs. Polla remarked that Paraguay represents a significant growth frontier for Bitfarms, which is planning an infrastructure expansion of 270 MW across the new Paso Pe and Yguazu farms.

Despite recent market fluctuations where Bitfarms’ stock dropped by 16.7% over the past five days, the company's shares have still seen a considerable gain. Over the past six months, BITF stock has risen by 37%. This positive trend underscores the market’s optimistic outlook towards Bitfarms’ expansion and operational strategies in leveraging renewable energy sources for sustainable and cost-efficient bitcoin mining. The strategic move to increase capacity at the Yguazu facility reflects Bitfarms’ commitment to scaling up operations while maintaining financial efficiency and supporting sustainable mining practices.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.