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Bitfarms Sells Paraguay Mining Site to HIVE for $85M

Coin WorldTuesday, Jan 28, 2025 3:39 am ET

1min read

Bitfarms, a leading cryptocurrency mining company, has entered into a binding Letter of Intent (LOI) with HIVE Digital Technologies, a Canadian-based blockchain infrastructure company, to sell its 200 MW bitcoin mining site in Yguazu, Paraguay. The transaction is valued at approximately $85 million.

The sale of the Paraguay mining site is part of Bitfarms' strategic plan to optimize its operations and reduce its debt. The company has been facing financial challenges due to the recent decline in bitcoin prices and increased energy costs. By selling the Paraguay site, Bitfarms aims to improve its liquidity and focus on its core mining operations in Canada.

HIVE, on the other hand, is looking to expand its mining capacity and diversify its operations. The acquisition of the Paraguay site will enable HIVE to increase its hash rate and strengthen its position in the cryptocurrency mining industry. The company has been actively investing in mining infrastructure and has recently expanded its operations in Canada and Sweden.

The LOI between Bitfarms and HIVE is subject to certain conditions, including regulatory approvals and the completion of due diligence. The transaction is expected to close in the second quarter of 2023. Upon completion, HIVE will assume control of the Paraguay mining site and integrate it into its existing operations.

The sale of the Paraguay mining site is a significant development in the cryptocurrency mining industry, as it reflects the ongoing consolidation and strategic realignment of mining companies in response to market conditions. As bitcoin prices and energy costs continue to fluctuate, mining companies are increasingly focusing on optimizing their operations and reducing costs to remain competitive.

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