HomeCrypto NewsParaguay's anti-mining law does not stop the expansion of Bitcoin

Paraguay’s anti-mining law does not stop the expansion of Bitcoin

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Bitfarms, the Bitcoin mining company listed on the Nasdaq and the Toronto Stock Exchange, reported on the expansion of its electrical energy management capacity in Paraguay. An increase that is achieved by concession from the State, despite the fact that legislators evaluate the possibility of eliminating mining activity.

According to advertisement made on its official site, the company obtained an additional 100 megawatts (MW) of energy of the state public services company, the National Electricity Administration of Paraguay (ANDE).

The country’s advantages stand out even in the midst of the regulatory threat that looms over the bitcoin mining industry, since discussion of a bill that seeks to prohibit all activity related to the asset in Paraguay. And although the debate has been postponed and the risk is still on the tableBirfarms seems willing to continue betting on this country.

In such a way that the mining company anticipates that, with the additional megawatts, it will double the hydroelectric capacity of the site it is building in Yguazú, east of Paraguay, which is expected to enter fully operational by 2025.

The farm, whose construction works They started last March and which already has high voltage interconnection to the ANDE substation, was initially assigned about 100 megawatts of energy.

According to Bitfarms, the hydroelectric plant will generate low-cost electricity at $0.039 per kilowatt hour (kWh), without being subject to inflationary increases. “The additional 100 MW provides a low-cost growth path for the first half of 2025 without affecting our target of 21 EH/s by 2024, which remains on schedule,” commented Ben Gagnon, the company’s Mining Director.

In this way, they hope that with the expansion of energy capacity to 200 MW, the megawatts under management grow by 23%going from 428 MW to 528 MW.

“Importantly, this expansion leverages our existing construction plan, amortizing development costs over a broader infrastructure base and reducing overall costs per megawatt,” Gagnon added.

In this regard, the general manager for LATAM, Damián Polla, highlighted the rapid progress of Bitfarms projects in Paraguay, thanks to the expansion of infrastructure in the Paso Pe and Yguazú parks.

As CriptoNoticias reported, it was in July 2023 when the announcement was made about the construction of two new mining farms In Paraguay (one in Villarrica and the other in Yguazú). This, taking into account that the South American country began to gain relevance in the industry due to its geographical conditions.

The construction of these two farms to mine Bitcoin in Paraguay places Bitfarms as one of the main companies in the sector in the regionsince since 2022 the company operates a megafarm in Río Cuarto, Córdoba, Argentina.

In that sense, Polla takes what happened in Paraguay as a sample of the greatest opportunity for growth that the company has in Latin America compared to other countries. He cites the particular characteristics of Paraguay, highlighting its potential due to the abundance of hydroelectric resources.

Bitfarms also has Bitcoin mining facilities in the United States and Canada. In April, plans were reported to invest approximately USD 240 million to update its mining equipment after the halving. They plan to increase their hash rate capacity to 21 exahashes per second.

All this occurs in the midst of the scandal that has represented the departure of Bitfarms CEO, Geoffrey Morphy, who some days ago filed a lawsuit for 27 million dollars against the mining company.

Morphy had been scheduled to continue as CEO and president until a replacement could be found, after announcing his departure in March. However, on May 13, the company decided to fire him after it accused Bitfarms of “breach of contract, unjustified dismissal, and aggravated and punitive damages.”

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