Bitfarms, a bitcoin miner, has signed two power purchase contracts in Paraguay that will add 150 megawatts of hydropower to the country.

Bitfarms announced on Wednesday a deal worth up 50 MW in Villarrica. This is close to Bitfarms’ existing operations. The second deal is worth up 100MW in Yguazu.

Geoff Morphy said that Bitfarms had acquired contracts to secure renewable energy in Paraguay. These contracts are valuable but limited and allow Bitfarms to expand its presence in this resource-rich nation.

Bitfarms will begin construction in Villarica during the first quarter 2023. A substation will be built first, followed by a mining facility. The company can build a farm up to 100 MW in Yguazu. However, the start date is not yet determined.

Bitfarms has announced that the cost per kilowatt-hour (kWh) in both locations will be $0.039, before value added tax. The price won’t be adjusted to account for inflation.

Bitfarms announced in May that it had accelerated the stated timeframe to reach 6 exahash/seconds (EH/s), of computing power, by the end third quarter. Its per-share losses also decreased significantly from quarter to quarter.

Bitfarms has 11 farms located in Canada and the United States.