Bitfarms’ construction of a bitcoin mega-mining farm in Argentina has legislators concerned. Martn Berhongaray, a national deputy, recently introduced a resolution to compel the government to disclose information about the facility’s installation, with representatives from the Ministries of Science, Technology, and Innovation, Environment and Sustainable Development, and the National Economy.
The ambitious project that Bitfarms, a Canadian mining behemoth, is constructing in Argentina has already sparked concern among Argentine legislators. Martn Berhongaray, a national deputy, introduced a law proposal for the government to explain how this deal was conceived and whether the company has passed oversight of the various state institutions involved, such as the Ministries of Science, Technology, and Innovation, Environment and Sustainable Development, and the nation’s economy.
The proposed legislation necessitates disclosure of:
The competent areas in energy, environmental, and economic matters registered the agreement announced by the Canadian company Bitfarms, to source electricity through a Wholesale Electricity Market Agent (MEM) for 8 years.
The mining farm will house 55,000 mining machines, and Bitfarms is said to have signed a contract with a private power company for 210 megawatts (MW) of infrastructure capacity at a rate of 2.2 cents per kilowatt-hour.
The proposal appears to be aimed at obtaining information about the energy facility that will provide the power, as well as the long-term viability of this deal. While the construction company has been identified as PROA, the power company and the location of the facility remain unknown to the public, as it was only revealed in a recent PR statement that it will be located in a rural area.
These reservations have undoubtedly influenced the proposal, which also asks:
If the total electrical system installed in the country, or imminent installation, has that available capacity. If the consumption of that electrical energy used will receive a subsidy from public funds.
The reason for Bitfarms’ expansion into Argentina is well known. The region provides affordable energy opportunities in certain parts of the country, which is causing an increasing number of companies to consider the area as a possible expansion destination.