Argentine deputy Martín Berhongaray asked the government for details on the electricity he will consume Bitfarms.
Two weeks ago, specifically on October 12, we reported that Bitfarms announced the construction of a mega mining farm Bitcoin, with 55,000 mining equipment, in Argentina. Everything seemed to be fine in the country in this regard, but apparently it is not: a deputy has seriously questioned the project.
Martín Berhongaray, national deputy of La Pampa, presented a resolution to compel the government to disclose information about the facility’s installation, through representatives of the Ministries of Science, Technology and Innovation, Environment and Sustainable Development, and the National Economy.
The project that Bitfarms, a mining giant based in Canada, is building in Argentina, it is considered worrying for Berhongaray. Specifically, it presented a resolution for the government to explain how this agreement was conceived and if the company has passed the supervision of the different state institutions linked to the agreement.
Low electrical cost
According to the deputy’s request text, he requires disclosure related to:
- The competent areas in energy, environmental and economic matters registered the agreement announced by the Canadian company Bitfarms, to supply electricity through a Wholesale Agent of the Electricity Market (MEM) for 8 years.
The mining farm will house 55,000 mining machines, and Bitfarms, It will reportedly contract with a private power company to receive 210 megawatts (MW) of infrastructure capacity at a rate of 2.2 cents per kilowatt-hour.
The legislator adds what is clearly true: it is the low cost of electricity that makes Argentina attractive, and for that very reason, he considers the investigation important:
“The main incentive to settle in the country is obviously economic: the cost of a Bitcoin during the fourth quarter of 2020 was approximately USD $ 7,500 in Quebec; with the advertised rate, During the same period, the cost here would have been USD $ 4,125. A savings of 45%. The installation would be made taking advantage of the cold conditions in the south of our country, which allows saving in refrigeration, an important consumption ”.
The doubts of the deputy
With his request, the deputy asks seems to obtain information on the energy facility that will provide energy and the sustainability of this agreement in the future. You are concerned that the power company and the location of the facility remain a mystery to the public, since it has only been revealed that it will be located in a rural area, but not the precision of it.
It is also concerned about:
If the total electrical system installed in the country, or imminent installation, has that capacity available. If the consumption of that electrical energy used will receive a subsidy from public funds and if so, what is the source of financing for that subsidy and what are the criteria and justifications that justify its granting.
The arguments of Bitfarms to operate in Argentina
As we comment, Bitfarms expanded to Argentina because it offers affordable energy opportunities in certain parts of the country.
On that, the president of Bitfarms, Geoffrey Morphy, said:
With considerable low-cost energy available to us for many years, we can improve our short-term margin performance and ensure a viable operation.
It is worth adding that, as highlighted Iproup, Bitfarms remarked as advantages of Argentina a “Favorable climate throughout the year” for the installation, which according to the firm will be a “Significant contribution”To its production target by the end of 2022.
In addition, the company wants “Provide geographic diversification of production to reduce risk.” Morphy adds: “Our planned expansion in Argentina is a continuation of our experience and our desire to offer shareholder value. Strategic expansion provides the scale and efficiency we were looking for ”.
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