The Canadian bitcoin mining company BitFarms, estimates that in the fourth quarter of 2021, it will be able to mine bitcoin at a cost of $4.125 each.
Bitfarms was founded in 2017 and operates vertical bitcoin mining facilities. It already has five industrial-scale facilities in the Québec area. All are powered by environmentally friendly energy from hydroelectric projects, the supply of which is guaranteed by long-term contracts.
In October 2020, Bitfarms announced the signing of a $0.02/kWh electricity supply agreement to power its 60 MW mining facility in Argentina. Then the agreement was revised and finally the power of the installation will reach 210 MW, with the cost of electricity supplied in the first four years being 0.022 USD/kWh. The agreement is valid for eight years.
At the same time, as announced, the facility will operate 48.000 MicroBT mining devices. The power of 210 MW, however, is enough for the operation of 55.000 such devices.
All of this can yield profits of $650 million or 11.774 bitcoin considering the current degree of mining difficulty and an average price of $55.000 per bitcoin.
If we take into account that the cost of mining a bitcoin at the company’s premises in Québec in the fourth quarter of 2020 reached $7.500, then the cost of $4.125 per bitcoin estimated for installation in Argentina, makes a cost reduction of 45%.