Bitfarms Expands Mining Operations with New Site in Paraguay
Bitfarms, a leading bitcoin mining enterprise listed on the U.S. stock market, has announced the successful acquisition of a new site in Yguazu, Paraguay. The company plans to establish a 100 megawatt (MW) mining facility at the location, as part of its ambitious strategy to increase its capacity to 21 exahash per second (EH/s) by the end of the year.
Paraguay's Growing Mining Sector
The acquisition of land in Yguazu aligns with the current trend of significant expansion in the mining sector. Many mining corporations have been expanding their operations and acquiring tens of thousands of application-specific integrated circuit (ASIC) mining rigs.
"The newly acquired land is strategically located near the Itaipú Dam, which is the third largest hydropower dam in the world with 14 gigawatts of installed capacity," said Geoff Morphy, President and CEO of Bitfarms. "This prime location allows us to tap into the region's abundant renewable energy resources, making our new facility economically and environmentally sustainable."
Once the Yguazu facility is operational, over 85% of Bitfarms' portfolio will be powered by low-cost green energy, promoting environmentally sustainable bitcoin mining.
Growth and Future Plans
Bitfarms plans to complete the construction phase of the new facility by the end of 2024. This expansion is a crucial part of the company's strategy to reach a corporate hashrate of 21 EH/s by the close of 2024. To achieve this, Bitfarms has a purchase option agreement with Bitmain for additional T21 mining rigs.
Despite experiencing an 8% decline in value over the week, Bitfarms' shares witnessed a 5% increase in value against the U.S. dollar on Wednesday. However, 30-day data shows a loss of over 25% in the value of BITF shares this month.
Share Your Thoughts
What are your thoughts on Bitfarms' expansion in Paraguay? Let us know in the comments section below.
Frequently Asked Questions
How can you withdraw from a Precious metal IRA?
If you have an account with a precious-metal IRA company like Goldco International Inc, you might consider withdrawing your funds. If you decide to sell your metals this way, they will be much more valuable than if they were inside the account.
Here is how to withdraw precious metal IRA funds.
First, you need to find out if the provider of your precious metal IRA allows withdrawals. Some companies will allow withdrawals, while others won't.
Second, determine whether you can take advantage of tax-deferred gains by selling your metals. Most IRA providers offer this benefit. Some do not, however.
Third, you should check with the provider of your precious metal IRA to determine if there are fees for these steps. There may be an additional charge for withdrawing.
Fourth, ensure that you keep track your precious metal IRA investment for at least 3 years after selling them. You should therefore wait until January each year to calculate capital losses on your investment portfolio. Then file Form 8949, which provides instructions for calculating the amount of gain you realized.
Not only must you file Form 8949 but also have to report to the IRS the sale of precious metals. This will ensure you pay taxes on all the profits that your sales generate.
A trusted attorney or accountant should be consulted before you sell your precious metals. They can assist you in following the correct procedures and avoiding costly mistakes.
Can I get physical ownership of gold in my IRA
Many people are curious if they can possess physical gold in an IRA. This is a legitimate question since there is no legal way.
You can still own gold in an IRA if you look at the law.
Problem is, most people don’t realize how much they can save by putting gold in an IRA and not keeping it in their home.
It's easy for gold coins to be thrown away, but it's much more difficult to keep them in an IRA. If you decide not to keep your golden in your home, you'll need to pay twice tax. Two taxes will be charged: one to the IRS, one to the state you live in.
However, it is also possible to lose the gold in your home and pay twice tax. Why would you want it to stay in your home?
You may argue that it is necessary to have the assurance that your gold safe in your home. It is important to store your gold somewhere safer in order to prevent theft.
If you are planning to visit frequently, your gold should not be left at home. If you leave your gold unattended, thieves can easily steal it while you're out of town.
A better option is to store your gold in an insured vault. Your gold will be protected against fire, floods, earthquakes, and robbery.
A vault can also be beneficial because you don't need to pay property tax. Instead, any gains that you make by selling your gold will be subject to income tax.
You may be interested in an IRA if you don't want to pay taxes on your gold. You won't be subject to income tax if you earn interest from your gold with an IRA.
You don't have to pay capital gains taxes on gold. This means that you can cash out the entire value of your investment at any time you like.
And because IRAs fall under federal regulation, you won’t have any problems getting your gold transferred to another institution if you move.
Bottom line: You can have gold in an IRA. Only thing stopping you from owning gold in an IRA is your fear of getting it stolen.
Which type of IRA works best?
It is crucial to find the right IRA for your needs. You must consider whether you want to maximize tax-deferred growth on your contributions, minimize taxes now and pay penalties later, or just avoid taxes altogether.
The Roth option is a good choice if you have a lot of money saved for retirement, but not enough to invest. It's also worth considering if your plan is to work after the age of 59 1/2.
Traditional IRAs might be more beneficial if you are looking to retire early. You'll likely owe income taxes. But if you're going to work well past age 65, the Roth IRA might make more sense since it allows you to withdraw some or all of your earnings without paying taxes.
What type of IRA is used for precious metals?
Most financial institutions and employers offer an Individual Retirement Account (IRA). This is an investment vehicle that most people can use. A IRA is a way to make money and allow it to grow tax-deferred, until you withdraw it.
An IRA lets you save taxes and pay them off later. This allows you to save more money today and pay less taxes tomorrow.
An IRA is a great investment because your earnings and contributions are tax-free. You can withdraw funds at any time. If you do withdraw the funds earlier than that, you will be subject to penalties.
After 50 you can still make contributions to your IRA. There is no penalty. If you take out of your IRA during retirement you will owe income and a 10% federal penal.
Withdrawals that are made prior to the age of 60 1/2 are subjected to a 5% IRS tax penalty. Between the ages of 591/2 and 70 1/2, withdrawals are subject to a 3.4% IRS penal.
Withdrawal amounts exceeding $10,000 per year are subject to a 6.2% IRS penalty.
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
How to decide if a Gold IRA is right for you
Individual Retirement accounts (IRAs) are the most common type of retirement account. IRAs may be obtained from financial planners or banks as well as mutual funds and banks. The IRS allows individuals up to $5,000 in annual contributions without tax consequences. This amount can go into any IRA. However, certain IRAs have limits on the amount you can deposit. For example, if your age is less than 591/2 years old, you can't contribute to a Roth IRA. You must wait until your age 70 1/2 to make contributions if you are under 50. Additional, employees who work for their employer might be eligible to receive matching contributions.
There are two main types of IRAs: Traditional and Roth. Traditional IRAs can be used to invest in stocks or bonds, as well other investments. Roth IRAs are only available for after-tax dollars. Roth IRA contributions are not subject to tax when they are made, but Roth IRA withdrawals are. Some people prefer to combine these two accounts. Each type of IRA comes with its own pros and cons. What should you look at before deciding which type is best for you? Here are three things to keep in mind:
Traditional IRA Pros:
- Each company has its own contribution options
- Employer match possible
- Save more than $5,000 per Person
- Gain tax-deferred until withdrawal
- You may have income restrictions
- Maximum contribution limit: $5,500 per annum (or $6,500 for married filing jointly).
- The minimum investment is 1000
- After age 70 1/2 you are required to begin mandatory distributions
- You must be at the least five years of age to open an IRA
- You cannot transfer assets between IRAs
Roth IRA pros
- Contributions are tax-free
- Earnings can grow tax-free
- No minimum distributions
- The only options for investing are stocks, bonds, or mutual funds
- There is no maximum contribution limit
- No limitations on transferring assets between IRAs
- Age 55 or older to open an IRA
You should be aware that not every company offers the same IRAs. For example, you might be able to choose between a Roth IRA (or a traditional one) from some companies. Some will let you combine them. It is also important to note that different types IRAs will have different requirements. A Roth IRA does not have a minimum investment requirement. Traditional IRAs require a minimum of $1,000.
The Bottom Line
The most important factor when choosing an IRA is whether you plan to pay taxes immediately or later. If you are retiring within ten year, a traditional IRA could be the right option. A Roth IRA might be better suited to you. Either way, it's always a good idea to consult a professional about your retirement plans. You need someone who knows what's happening in the market and can recommend the best options for your situation.
By: Jamie Redman
Title: Bitfarms Acquires Land in Paraguay for New Mining Facility
Sourced From: news.bitcoin.com/bitfarms-expands-mining-operations-with-new-100-mw-facility-in-paraguay-aiming-for-21-eh-s-capacity-by-year-end/
Published Date: Wed, 24 Jan 2024 22:00:26 +0000