Global bitcoin mining firm Bitfarms said the price of bitcoin, especially all other factors, is one of the most important factors for the future of the industry. Damián Polla, general manager of Bitfarm’s Latin America, said that in countries like Argentina, where Bitfarm is building a large-scale bitcoin mining center, the fortunes of bitcoin mining companies are very good due to different factors.
Falling Bitcoin price poses a challenge
Bitcoin mining companies are starting to feel the effects of the deceleration in Bitcoin’s price in the crypto market. The company declared that the Bitcoin price drop, especially of all factors, is the most important issue facing miners right now. Because of its holdings, this directly impacted the company, bringing its valuation from unicorn status to below $500 million currently.
Damian Polla, General Manager of Bitfarm Latin America, said in an interview with local media:
In Argentina and globally, the biggest challenge facing the industry in the short term is the fall in the price of Bitcoin, which reduces revenue and increases operating costs.
Polla also sees this price drop as a testament to the development of the cryptocurrency market, which he characterizes as “mainstream” in the global market due to its correlation with other traditional stock indices.
Argentine Bit Farms
The company owns a 1.5% share of the global Bitcoin hash rate and has made significant investments in Argentina and Paraguay. The company is currently building a Bitcoin mega farm in Argentina designed to accommodate 55,000 miners with a power capacity of 210 megawatts. While other companies in the country are executing layoffs to resist the announced impending economic phase, Bitfarms is currently creating 200 jobs through the construction of the aforementioned mining facility.
Polla revealed the factors that led Bitfarms to place its investments in the country instead of moving them elsewhere. He explained:
Argentina is a very good destination for this type of investment as it offers competitive energy prices, quality human resources and a very active cryptocurrency ecosystem. Despite the ups and downs of the economy, Argentina’s crypto ecosystem remains a leader in the region.
While the company has no current plans to make new investments in the region, Polla explained that Bitfarms has been evaluating new opportunities in Argentina, Latin America and even the United States
What do you think of Bitfarms’ views on the challenges of the mining industry? Let us know in the comments section below.
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