Canada-headquartered bitcoin mining firm Bitfarms said it has signed a pre-paid contract securing a fixed power rate of $21 per megawatt-hour (mWh) for its Argentina site for the upcoming six months.
Bitfarms said in a release on Wednesday that the rate, applicable to its Rio Cuarto site, will span from November to April thanks to “seasonally lower natural gas prices in Argentina.”
Bitfarms president and CEO Geoff Morphy said the contract is anticipated to reduce the blended cost of power at the site to $25/mWh for 2024, subsequently reducing the average cost of power for its entire fleet.
The move comes as Bitfarms prepares itself for the halving next year, which is expected to take placein April.
In its third-quarter earnings report, Bitfarms disclosed a total power cost of $16,900 per mined bitcoin. With a self-disclosed fleet efficiency of 36 joules per terahash (J/TH) throughout the quarter, Bitfarms’ average cost of power was estimated to be approximately $45/mWh.
The company operates multiple sites across Canada, the U.S., Argentina, and Paraguay, boasting a total capacity of 240 megawatts.
As per Bitfarms’ October update, the Rio Cuarto site has recently achieved a capacity of 54 megawatts, facilitating around 1.6 EH/s of installed hashrate, which accounts for roughly 23% of Bitfarms’ total fleet.