China’s crackdown on mining has led miners to seek other countries to continue their operations. Promises of cost reductions brought some to Argentina. However, the country’s government has now applied new fees for crypto miners in the province of Tierra del Fuego.
The Secretary of Energy of the Argentine Ministry of Economy published and announced resolution 40/2022, which eliminates government energy subsidies for crypto mining energy use. The new fees make mining in the country up to four times more expensive than it used to be.
According to the resolution, the hourly and seasonal energy used by miners is intense and constant. Because of this, crypto mining “presents challenges to the infrastructure of the concession area they are connected to.”
The resolution adds that because the activity is profitable and payment is available, crypto miners must pay energy prices that are “equivalent to the cost of supply.” He also mentions that it is unfair that miners are paying the same subsidized price that a residential user is paying.
The new regulation affects miners located in the province of Tierra del Fuego, a place known for its cold climate that makes it ideal for miners who need to regulate the temperature of mining equipment.
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Meanwhile, a federal region in Russia called Irkutsk Oblast is struggling with a surge in energy demand for Bitcoin mining. Due to newly established mining activities, it is difficult for the region to maintain energy stability.
Although there are difficulties in terms of energy prices, miners have also had problems due to natural phenomena. Due to a winter storm, a mining company in Texas closed 99 percent of operations due to an expected increase in energy demand during the storm. This was done to ease the pressure on the state’s power grid.
This post Profitability makes crypto mining more expensive in Argentina
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