Bitfarms, the bitcoin mining company listed on the Nasdaq and Toronto Stock Exchange (TSX), has announced a major expansion of its Yguazu facility in Paraguay. The company has secured an additional 100 megawatts (MW) of power from ANDE, the state-owned utility firm. This move is expected to double the capacity of the hydro-powered site and is set to be fully operational by 2025.
Bitfarms, which is traded under the ticker BITF, has obtained this extra capacity for its Yguazu facility, thanks to a partnership with ANDE. The company claims that this hydropower will generate low-cost electricity at a rate of $0.039 per kilowatt-hour (kWh), while also avoiding inflationary increases. Construction at the Yguazu site began in March, including the installation of a high-voltage interconnection to the ANDE substation.
According to Ben Gagnon, Bitfarms’ chief mining officer, the additional 100 MW of power provides a cost-effective growth path for the first half of 2025 without affecting the company’s target of reaching 21 exahashes per second (EH/s) by 2024. Gagnon stated, “Growing Yguazu to 200 MW is expected to increase our megawatts under management by 23% from 428 MW to 528 MW in 2025.”
Gagnon also highlighted the benefits of this expansion, saying, “Importantly, this expansion takes advantage of our existing construction plan, spreading development costs across a wider infrastructure base and reducing overall costs per megawatt.”
Damian Polla, Bitfarms’ General Manager of LATAM, explained that the additional megawatts were obtained directly through ANDE, without any acquisition costs. He also emphasized that Paraguay represents Bitfarms’ most significant growth opportunity, with plans for infrastructure expansion at the new Paso Pe and Yguazu farms, which will provide an additional 270 MW.
Despite recent downward pressure on Bitfarms’ stock, with a 16.7% decline in the past five days, the company has still seen a 37% rise over the past six months.
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