Bitfarms Sells Paraguay Mine, Reinvests in US Expansion

Bitfarms, a multinational Bitcoin mining firm, has announced the sale of its 200 megawatt (MW) facility in Yguazu, Paraguay, to Hive Digital Technologies, a competing mining and AI company, for approximately $85 million. The capital raised from this sale will be reinvested to strengthen Bitfarms' capacity in the US.

On January 28, Hive signed a binding letter of intent to purchase the Yguazu facility, which was Bitfarms' largest Bitcoin mining facility in the country. The company's other two mining sites in Paraguay, Villarrica and Paso Pe, have a combined capacity of 80 MW, each contributing 10 MW and 70 MW, respectively.

Bitfarms CEO Ben Gagnon stated that the sale of the Yguazu site was aimed at streamlining the company's operations and rebalancing its portfolio towards North America. The company plans to rebalance its portfolio to roughly 80% North American and 20% international by the end of 2025. Gagnon added that Bitfarms will be reinvesting the capital from this sale towards its 1 GW growth pipeline in the US for BTC and HPC/AI infrastructure, marking a significant milestone in its transition from an international Bitcoin miner to a North American energy and compute infrastructure company.

The transaction between Hive and Bitfarms is expected to close at the end of the first quarter of 2025, when the latter will receive its first payment of $25 million. Hive will pay $31 million over the following six months. Out of the remaining $29 million, $19 million will be the reimbursements for power deposits and $10 million in remaining capital obligations.

Gagnon said that this shift towards US-based assets is in line with the company's strategy to diversify beyond Bitcoin mining and capitalize on the significant growth opportunities in HPC/AI. Amid ongoing structuring, Bitfarms expects a 21% reduction in Bitcoin mining capacity and a 10% reduction in estimated average power costs by year-end.