Bitfarms Worried About The Fall In Bitcoin Prices Amidst Its Investment Plan in Latam – The price of bitcoin, above all other elements, is one of the most crucial aspects for the future of the industry, according to Bitfarms, a global bitcoin mining firm.
Because of several factors, Damián Polla, Bitfarm’s Latam General Manager, believes that countries like Argentina, where Bitfarm is developing a bitcoin mega-mining facility, are a very good choice for bitcoin mining enterprises.
The impacts of the deceleration of bitcoin’s price in crypto markets are beginning to be felt by bitcoin mining companies. The firm has stated that the drop in bitcoin prices, above all other factors, is the most pressing issue that miners are currently facing. Because of its interests, this has had a direct impact on the company, lowering its valuation from unicorn status to under $500 million.
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Damian Polla, Bitfarm’s Latam General Manager, said in an interview with local media:
“The main short-term difficulty for the sector, both in Argentina and globally, is the drop in bitcoin prices, which cuts revenues and raises operational costs.”
This drop in prices was also seen by Polla as proof of the cryptocurrency market’s progress, which he described as mainstream in global markets due to its link with other traditional equity indexes.
The company has made significant investments in Argentina and Paraguay, in which it holds a 1.5 percent share of the global Bitcoin hashrate. The company is now constructing a Bitcoin mega farm in Argentina, with a capacity of 55K miners and 210 megawatts of power.
While other companies in the country are laying off workers to prepare for the approaching economic downturn, Bitfarms is now creating 200 jobs with the development of the mining facility described.
Polla stated the considerations that influenced Bitfarms’ decision to invest in the country rather than elsewhere. He elaborated:
“Argentina is an ideal location for this type of investment since it has competitive energy prices, high-quality human resources, as well as a thriving cryptocurrency ecosystem. Despite the country’s economic ups and downs, Argentina’s crypto ecosystem is a regional leader.”
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Bitfarms Worried About The Fall In Bitcoin Prices Amidst Its Investment Plan in Latam – While Bitfarms is not planning any fresh investments in the area at the moment, Polla stated that the company is always looking for new prospects in Argentina, Latin America, and even the United States.
