Bitcoin mining companies’ infrastructure deployment continues thanks to high BTC prices in 2023. In this case, Argentina-based Bitfarms exponentially increased its hashing power with the expansion of its center in the South American country. Now, the company reaches a new record in block processing capacity.
It should be noted that by the middle of next year, the halving of the Bitcoin network will take place. The latter is an automatic event aimed at creating a scarcity of the digital currency and thereby triggering long-term valuation. To achieve this, the network halves the rewards it gives to miners for each valid block of transactions processed.
Relationship between Halving and the Deployment of Bitcoin Mining Companies
The fact that halving halves the rewards to miners is a cause for anxiety for that industry. In that regard, Bitcoin mining companies are looking to increase the deployment of their capacity to ensure stable revenues after the cut. Some companies such as CleanSpark and Marathon have been working on that at an accelerated pace.
Attending to the possible contexts that await it, the company’s expansion allowed its computing power to reach 5 EH/s this Thursday. The Rio Cuarto, Cordoba (Argentina) farm now has more mining equipment and allowing the company to increase its revenues. Like other mining groups, it takes advantage of high BTC prices to invest in its own production.
It should not be lost of sight the fact that the Bitcoin mining deployment has time against it. This is because the crypto winter of 2022 turned out to be a lost year in which not only was there no capacity for expansion, but many companies went bankrupt. The fact that the total Bitcoin hashrate increased last year does not mean that all companies were able to grow.
6 EH/s by the End of the Year
Bitcoin mining company’s management assures that they are working hard to keep up the pace of expansion of their operations. “This moment of excitement is a reflection of the hard work of our teams over the past two years, resulting in the largest, most advanced, and lowest cost facility we have,” said Geoff Morphy, CEO of the company.
Next, the entrepreneur noted that the goal by the end of 2023 is to reach 6 EH/S. “With our new miner purchases and new expansion opportunities, we expect our farm in Argentina to be a major growth driver in the coming months as we move toward our year-end goal of 6.0 EH/s.”
Jeff Lucas, who is CFO of the company, highlighted the goodness of the South American country for the business. He said that low energy prices allow for increased return capacity on these ASIC investments.
As such, the deployment of Bitfarms’ Bitcoin mining equipment in Argentina becomes one of the group’s main bets. “The farm in Argentina is a key component of our strategy to control costs and maintain our average cost of Bitcoin mined,” he noted. He then highlighted that the expansion also significantly increases gross revenues for this company founded in 2017.
By Marina Meza
