Business

Bitfarms signs two hydropower PPAs in Paraguay

Bitfarms signs two hydropower PPAs in Paraguay

Bitcoin mining company Bitfarms Ltd. has signed two power purchase agreements (PPA) in Paraguay for up to 150 MW of eco-friendly hydropower.

The agreements cover up to 50 MW in Villarrica, in close proximity to Bitcoin’s existing operations in Paraguay, and up to 100 MW in Yguazu, a new location close to Itaipu project, the third largest hydroelectric powerhouse in the world.

At Villarrica, construction is scheduled to commence in the third quarter of 2023, beginning with a substation followed by building out a second mining facility. At Yguazu, Bitfarms has the opportunity to develop a new farm with up to 100 MW of mining capacity, the timeline for which is being determined.

Hydropower at both locations will be provided at a contracted cost of about 3.9 cents/kWh, before VAT, and is not subject to annual inflationary adjustments.

“As we approach the next Bitcoin halving, we are seeking to drive growth by leveraging our farm design expertise and drawing upon our operational experience to broaden our geographical presence and optimize global, underutilized power resources,” said Geoff Morphy, chief executive officer of Bitfarms. “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.”

Bitfarms develops, owns and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service and multiple onsite technical repair centers. Bitfarms has 11 farms in four countries: Canada, the U.S., Paraguay and Argentina, powered by predominantly environmentally friendly hydroelectric and long-term power contracts. Bitfarms is committed to using sustainable, locally based, and often underutilized energy infrastructure, according to a release.

In April 2023, Bitfarms entered into agreements to acquire 22 MW of hydropower capacity and to lease a site in Baie-Comeau, Quebec, Canada.