Argentina: opposition MP rejects Bitfarms’ bitcoin mining plant

Argentina: opposition MP rejects Bitfarms' bitcoin mining plant

Key facts:
  • Deputy Martín Berhongaray asks if Argentina will support Bitfarms’ energy consumption.

  • Bitfarms would save 45% on bitcoin mining costs in Argentina compared to Canada.

Bitfarms, a Canadian-based company dedicated to cryptocurrency mining, will be installed in Argentina and the deputies demand explanations about their energy consumption. The plant will be located in the province of La Pampa, something that worries the political representatives of the region.

Martín Berhongaray, the national deputy representing the Radical Civic Union party, He asked the government for information about cryptocurrency mining operations in Argentina. Through a draft resolution, asks the Ministries of Science, Technology and Innovation for details about the electricity supply that Bitfarms will require.

At the beginning of the month, Bitfarms ad which estimates working in La Pampa with up to 210 megawatts (MW) of energy. However, the deputy stated that, in the Los Nihuiles hydroelectric complex, installed capacity totals 224 MW, a figure higher than declared.

This hydroelectric plant is located in the center of the country in the province of La Pampa, as well as the future Portezuelo del Viento power plant. In this other, the maximum of 210 MW would be respected, according to Berhongaray. This figure is enough to deploy 55,000 new generation miners and get almost 12 thousand bitcoins, as reported by the deputy.

Argentina: opposition MP rejects Bitfarms' bitcoin mining plant
Bitcoin mining Bitfarms would save 45% more in costs in Argentina compared to Canada,
according to deputy Berhongaray. Source: Karolina Grabowska / pexels.com

Mining that amount of bitcoin equals $ 740 million approximately, as revealed today by the CriptoNoticias calculator. That is why the radical deputy states that “the main incentive to settle in the country is, obviously, economic.”

The cost of a bitcoin during the fourth quarter of 2020 was approximately $ 7,500 in Quebec. With the announced tariff –of 220 MW–, during the same period the cost would have been USD 4,125 –in Argentina–. A savings of 45%.

Martín Berhongaray, national deputy of the Radical Civic Union.

Berhongaray asks if Argentina will support Bitfarms energy and if it will be subsidized

Among the questions that the official asks the government, two stand out. First, see if the country’s electrical system can support this project. And, in the second instance, He asks if he will receive a subsidy from public funds and, if so, what is the reason and the source of financing.

The contract as an Argentine private energy provider that Bitfarms obtained has an initial term of 8 years, as published by CriptoNoticias. The agreement was signed at the beginning of October due to “the favorable climate throughout the year” that the country has, which benefits the cooling of bitcoin mining.

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