Argentina is becoming a true crypto asset hub. In addition to increasing adoption among the population, the country with an annual inflation rate of 50% has cheap energy and tax incentives for those who wish to undertake business there.
These initiatives have attracted a bitcoin factory that will be set up in Argentina. In total, British company FMI Minecraft Management will invest US$45 million in a mining hub in the country.
The bitcoin mining farm will be installed in Zapala, a region known as a free trade zone. Presumably, the new mining farm will produce between 30 to 50 bitcoins per day through the activity.
There will be 30 thousand pieces of crypto asset mining equipment on the farm, and each of them costs about US$ 8,000 on the market. And in less than a year, the mining farm will already be operating in Argentina, says the CEO and founder of the company, John Blount.
The reason for choosing Argentina is related to the tax incentive offered by the Zapala region. With the construction of the bitcoin mining farm, the business will have tax deductions due to the location where it will be set up.
In addition, Argentina is known for producing cheap electricity and other renewable energy sources. In the case of the bitcoin mining farm, natural gas will be the fuel used for the equipment.
In other words, the farm will use clean energy from the extraction of natural gas from the Campos de Vaca Muerta region, considered to be the second-largest natural gas reserve in the world.