Bitfarms (BITF), a Bitcoin mining company, has successfully secured two power purchase agreements in Paraguay, allowing it to add up to 150 megawatts (MW) of hydropower capacity.
The firm announced on Wednesday that one agreement, for up to 50 MW, is located in Villarrica, near Bitfarms' existing operations. The second contract, which could provide up to 100 MW, is based in Yguazu, near the Itaipu hydroelectric power plant.
Bitfarms' CEO Geoff Morphy stated that “Paraguay has access to an abundance of surplus renewable power, and these acquisitions secure valuable, yet limited, sustainable energy contracts while broadening our foothold in a resource-rich country.”
The company's strategy is to initiate construction in Villarica during the first quarter of 2023, beginning with a substation and followed by a mining facility. As for Yguazu, Bitfarms has the potential to establish a new farm of up to 100 MW, although the start date is undecided.
In both locations, Bitfarms confirmed that the price per kilowatt hour (kWh) would be $0.039 before value-added tax and would not be adjusted for inflation.
In May, Bitfarms revealed that it had fast-tracked its target of obtaining 6 EH/s of computing power by the end of the third quarter, and it significantly reduced its per-share loss quarter-over-quarter.
Currently, Bitfarms operates 11 farms, located in Canada, the United States, Paraguay, and Argentina.