Secures 200 MW for Bitcoin Mining

• Expansion allows Bitfarms to manage 528 MW, leveraging existing infrastructure to reduce costs per megawatt.
• Amidst expansion, former CEO Geoffrey Morphy sues Bitfarms for $27 million over alleged contractual breaches.

Despite regulatory uncertainties in Paraguay, Bitfarms, a Bitcoin mining company listed on both Nasdaq and the Toronto Stock Exchange, has successfully secured an additional 100 megawatts (MW) of electricity from Paraguay’s state-owned power company, Administración Nacional de Electricidad (ANDE). This development comes as lawmakers in Paraguay deliberate on potentially banning mining activities related to the cryptocurrency.

Bitfarms announced on its official website that this new allocation of power would double the hydroelectric capacity of its facility under construction in Yguazú, eastern Paraguay. This site is expected to be fully operational by 2025. Initially, the Yguazú site was allocated 100 megawatts of power, and with the recent expansion, it will now manage a total of 200 megawatts.

The construction of the Yguazú farm, which began in March, has progressed swiftly, with high-tension interconnections already established to ANDE’s substation. According to Bitfarms, the hydroelectric power will be generated at a cost of $0.039 per kilowatt-hour (kWh), a rate not subject to inflationary increases.

Ben Gagnon, Bitfarms’ Director of Mining, stated that the additional 100 MW provides a cost-effective growth path through the first half of 2025 and does not affect their target of achieving a hash rate capacity of 21 exahashes per second by 2024.

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

With this expansion, Bitfarms aims to increase the megawatts under its management by 23%, rising from 428 MW to 528 MW. Gagnon emphasized that this expansion leverages their existing construction plan, spreading development costs over a broader infrastructure base and reducing overall costs per megawatt.

“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 head of Mining.

Damián Polla, General Manager for LATAM at Bitfarms, highlighted the rapid progress of the company’s projects in Paraguay, facilitated by the expansion of infrastructure at the Paso Pe and Yguazú parks.

Local News reported in July 2023 that construction had begun on two new mining farms in Paraguay, one in Villarrica and the other in Yguazú, marking the country’s growing importance in the industry due to its geographical conditions.

Bitfarms, which also operates a mega-farm in Río Cuarto, Córdoba, Argentina since 2022, views the developments in Paraguay as indicative of greater growth opportunities in Latin America compared to other regions. Polla pointed out Paraguay’s unique potential, highlighted by its abundant hydroelectric resources.

Bitfarms operates additional Bitcoin mining facilities in the United States and Canada. In April, the company announced plans to invest approximately USD 240 million to upgrade its mining equipment following the halving, aiming to increase its hash rate capacity to 21 exahashes per second.

Amid these expansions, Bitfarms is also navigating through a controversy involving its former CEO, Geoffrey Morphy, who recently filed a $27 million lawsuit against the mining firm. Morphy was expected to continue as CEO and president until a replacement could be found, following his announced departure in March.

However, on May 13, the company terminated him after he accused Bitfarms of breach of contract, wrongful dismissal, and aggravated and punitive damages.