Zapala Free Zone in Argentina set To Provide New Opportunities For Bitcoin Miners

Zapala Free Zone in Argentina set To Provide New Opportunities For Bitcoin Miners
In the first year, Zapala will build the power infrastructure for the mining farm, to generate more than 114 MW of power for mining operations.

Zapala Free Zone Invests In Bitcoin Mining

The first bitcoin mining-related investment will be made in Zapala, an Argentina free trade zone in the province of Neuquen. The zone aims to have a total installed capacity of 114 MW by 2023, which will be used to transform the area into a bitcoin mining hub. Bitcoin mining is encouraged in the region since Zapala, as a free zone, does not levy taxes for public services.

According to a business plan that will be presented to provincial officials, the project will require a $20 million investment and is projected to be completed in Q1 2023. According to John Blount, managing director of FMI Minecraft, the project will be staggered and will comprise “a 100 MW high-density data center for an industrial BTC data processor/miner, extendable to over 1 GW.”

According to Fernando Montero, CEO of the Zapala Free Zone, the company will need to install more than 100 kilometers of gas pipeline in the first year. Montero also went into detail about the advantages of carrying out these initiatives in the zone, claiming that:

“The fact of being a Free Zone gives us the benefit of being exempt from taxes for certain projects, which is why it is a very attractive space for investments related to oil & gas, mining, and technology. There is good accessibility and we are in the heart of the province.”

Argentina On The Spotlight Of Bitcoin Mining

Argentina has recently caught the attention of Bitcoin miners as a region with excellent business circumstances. Another mining business, Bitfarms, is constructing a big mining facility in the country that will have a capacity of 210 MW and will be able to handle 55K Bitcoin miners.

According to sources, Argentina’s key selling factor is the low cost of power utilized to mine bitcoin. Bitfarms received a price of 2.2 cents per kilowatt-hour, which the company’s CEO, Emiliano Grodzki, hailed as “attractive.”


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