Argentina’s Energy Price Hike: A Hard Blow to Bitcoin Miners

Argentina has dropped a bombshell on the bitcoin mining community. The country’s Ministry of Economy announced increased energy costs for cryptocurrency miners. This new measure comes into effect from August 1 and will run until October 31, 2023, according to livecoins.

High energy-consuming companies, not only bitcoin miners, will also bear the brunt of the cost hike. This change is due to drought-induced pressure on energy production. Therefore, Argentina sees fit to charge more from high-energy consumers.

National Director Marcelo Daniel Positino has approved this increase. Bitcoin miners will now pay 17,240 Argentine pesos ($63,15) per Megawatt-hour of consumption. This is a significant rise, which could hamper local miners’ operations.

The Argentine government has been keeping a close eye on crypto mining companies. It is enforcing regulation, increasing the pressure on anyone involved in crypto mining.

This energy cost increase is rooted in a 2022 rule. A study had indicated the high intensity and consistency of power consumption by mining activities. Hence, the government has reintroduced a differentiated energy charge that was in place in early 2022.

In short, these changes could significantly impact the profitability and viability of bitcoin mining in Argentina.

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