The multinational Bitcoin mining giant, is cashing in its chips by selling its largest mining facility in Paraguay to Hive Digital Technologies for a cool $85 million.
The business decision is all about refocusing on their U.S. expansion plans in the booming Bitcoin and AI infrastructure market.
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Back to the U.S.
Bitfarms is offloading its 200 megawatt mining site in Yguazu, Paraguay, which has been its crown jewel in the country.
This sale comes after Hive signed a binding letter of intent on January 28 to buy one of Bitfarms’ three mining farms in Paraguay.
The other two sites, Villarrica and Paso Pe, have a combined capacity of 80 MW, 10 MW and 70 MW, respectively.
New focus for the operations
Bitfarms CEO Ben Gagnon has made it clear that this move is all about streamlining operations and pivoting back to North America, as the company wants to flip its portfolio to about 80% North American and just 20% international by the end of 2025.
Gagnon detailed that they plan to reinvest the proceeds from this sale into their ambitious 1 gigawatt growth pipeline in the U.S., focusing on Bitcoin and high-performance computing for AI infrastructure.
This two together means a major transition from being an international Bitcoin miner to a North American energy powerhouse.
Future plans, expansion possibilities
The sale is expected to wrap up by the end of Q1 2025, with Bitfarms receiving an initial payment of $25 million, followed by another $31 million over the next six months.
Out of the remaining $29 million, $19 million will be reimbursements for power deposits, while $10 million covers outstanding capital obligations.
Gagnon also hinted at a strategic shift towards U.S.-based assets, for diversify beyond just Bitcoin mining and tap into the growing opportunities in computing and AI sectors.
In line with this restructuring, Bitfarms anticipates a 21% cut in Bitcoin mining capacity and a 10% drop in estimated average power costs by year-end.
With operations still working in Canada, the U.S., and Argentina, boasting capacities of 158.5 MW, 17.5 MW, and 54 MW respectively, Bitfarms is clearly gearing up for a new chapter.
