Bitfarms is a worldwide bitcoin mining company. They have stated that bitcoin’s price, more than any other element, is the key to the future success of the sector. Damián Polla, Bitfarm’s Latam General Manager, stated that countries like Argentina, where Bitfarms is currency building a bitcoin mega-mining center, were a very good destiny for bitcoin mining companies due to different factors.
A Challenge: Falling Bitcoin Prices
The deceleration in bitcoin prices is starting to affect the profits of Bitcoin mining firms. This company declared that bitcoin’s falling prices are the greatest problem for miners at the moment. The company’s holdings have directly affected its value, which has dropped from unicorn status to below $500 million.
In an interview given to local media, Damian Polla, Bitfarm’s Latam General Manager, stated:
Short-term, Argentina’s biggest issue is bitcoin’s fall, which could lead to lower revenues as well as higher operating costs.
Polla also considered this fall in prices as proof of the advance of the cryptocurrency market, which he qualified as being “mainstream” in global markets due to its correlation with other traditional equity indexes.
Bitfarms Argentina
It holds a 1.5% quota in the world’s Bitcoin hashrate and has invested heavily in Argentina, Paraguay, and other countries. It is building an Argentine Bitcoin mega farm that can host 55K people and has a capacity of 210 megawatts. Bitfarms currently generates 200 jobs through the construction of this mining facility, while other businesses in the country have been executing layoffs to avoid the upcoming economic downturn.
Polla revealed what factors had prompted Bitfarms to put their investment in this country rather than taking them abroad. He explained:
Argentina is an excellent destination to invest in this kind of investment because it has low energy costs, high quality people, and a vibrant cryptocurrency ecosystem. The crypto ecosystem of Argentina remains a strong leader, despite the ups and downs in Argentina’s economy.
The company does not plan to make any new investments in the region at this time, but Polla stated that Bitfarms will continue to look into new areas in Argentina, Latam and the U.S.
What do you think about Bitfarms’ opinion on the challenges of the mining sector? Leave a comment below.
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