Argentina faces 4x in crypto mining expenses due to profitability

Miners are looking for other nations to continue their activities after China’s mining crackdown decision. Some were lured to Argentina by promises of lower expenses. However, in the province of Tierra del Fuego, the country’s government has implemented new fees for crypto miners.

Argentina’s Ministry of Economy’s Energy Secretary released and proclaimed Resolution 40/2022, which eliminates government subsidies for power consumption. Mining in the country has become up to four times more expensive as a result of the increased prices. Before this, the Argentine government expressed its worries about Bitfarms’ mega-mining facility.

According to the resolution, miners utilize a lot of energy on a daily and seasonal basis. Crypto mining, as a result, “presents challenges to the infrastructure of the concession area to which they are connected.”

Crypto miners must pay energy costs “equivalent to the cost of supply” because the activity is productive and payment is accessible, according to the resolution. It goes on to say that it’s unfair that miners are charged the same subsidized rate as residential customers.

The new legislation applies to miners in the province of Tierra del Fuego, which is recognized for its chilly climate, making it ideal for miners who need to keep their mining equipment regulated.

Mining energy prices covers several factors

Meanwhile, Irkutsk Oblast, a Russian federal area, is grappling with an increase in Bitcoin mining energy consumption. The region is struggling to maintain energy stability as a result of newly created mining activity. Russia and Belarus have also planned to offer special electricity tariffs for crypto miners.

While there are challenges with energy prices, miners have also faced difficulties due to natural disasters. Due to a projected increase in energy demand during a winter storm, a miner in Texas shut down 99% of operations. This was done in order to ease the burden on the state’s power grid.