Legislators are concerned about Bitfarms’ building of a bitcoin mega-mining farm in Argentina. Martn Berhongaray, a national deputy, has introduced a resolution compelling the government to provide information regarding the facility’s installation through officials from the Ministries of Science, Technology and Innovation, Environment and Sustainable Development, and the economy.
The grandiose project that Bitfarms, a Canadian-based mining colossus, is constructing in Argentina has already raised worries among Argentina’s lawmakers. Martn Berhongaray, a national deputy, introduced a bill requiring the government to explain how this deal was conceived and whether the company has passed oversight by the various state institutions involved, including the Ministries of Science, Technology and Innovation, Environment and Sustainable Development, and the economy.
The proposed legislation demands disclosure of the following: Energy, environmental, and economic authorities registered the agreement announced by the Canadian business Bitfarms to obtain power through a Wholesale Electricity Market Agent (MEM) for an eight-year period.
The mining farm would house 55,000 machines, and Bitfarms has allegedly signed a deal with a private power provider to purchase 210 megawatts (MW) of infrastructural capacity at a cost of 2.2 cents per kilowatt-hour.
The suggestion seems to be aimed at obtaining information regarding the energy plant that will produce the electricity and the deal’s future viability. While the construction business has been named as PROA, the power company and the facility’s location remain a mystery to the public, since it was stated in a recent public relations announcement that it would be placed in a remote region.
These reservations have undoubtedly informed the proposal, which also poses the following question: If the country’s whole electrical system is installed, or is about to be built, at that capacity. If the electrical energy used is subsidized by public monies.
The reason Bitfarms expanded into Argentina is well-known. In some sections of the country, the region provides inexpensive energy options, which is attracting an increasing number of businesses to consider the region as a viable growth location. Geoffrey Morphy, president of Bitfarms, concluded:
With a significant supply of low-cost energy accessible for many years, we can increase our short-term margin performance and guarantee the operation’s viability.
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