Bitfarms, a global bitcoin mining company, said the price of bitcoin, above all other things, is one of the most important factors for the future of the industry. Damián Polla, Managing Director of Bitfarm Latam, said that countries like Argentina, where Bitfarms is building a bitcoin mining mega-center, are a very good destiny for bitcoin mining companies due to different factors. .
Falling Bitcoin prices pose a challenge
Bitcoin mining companies are starting to feel the effects of the bitcoin price deceleration in the crypto markets. The company said falling bitcoin prices, first and foremost, is the biggest problem facing miners right now. This has directly affected the company due to its holdings, pushing its valuation from unicorn status to less than $500 million currently.
In an interview with local media, Damian Polla, Managing Director of Bitfarm Latam, said:
The biggest challenge facing the sector in the short term, both in Argentina and globally, is the falling price of bitcoin, which reduces revenue and increases operating costs.
Polla also saw this price drop as evidence of the advancement of the cryptocurrency market, which he called “mainstream” in global markets due to its correlation with other traditional stock indices.
Bitfarms in Argentina
The company, which holds a quota of 1.5% of Bitcoin’s global hashrate, has made significant investments in Argentina and Paraguay. The company is currently building a mega Bitcoin farm in Argentina, which will be designed to house 55,000 miners with a capacity of 210 megawatts. While other companies in the country are executing layoffs as part of a plan to weather the announced next economic phase, Bitfarms is currently generating 200 jobs with the construction of the mentioned mining facility.
Polla revealed the factors that prompted Bitfarms to invest in the country instead of taking them elsewhere. He explained:
Argentina is a very good destination for an investment of this type because it offers competitive energy prices, quality human resources and a very active cryptocurrency ecosystem. Despite economic ups and downs, the crypto ecosystem in Argentina is a leader in the region.
Although the company is not currently planning new investments in the region, Polla explained that Bitfarms is still evaluating new opportunities in Argentina, Latam and even the United States.
What do you think of Bitfarms’ view on mining issues? Tell us in the comments section below.
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