Bitfarms Sells Paraguay Mining Site to Hive for $85 Million, Shifts Focus to U.S. Expansion

Bitfarms, a leading multinational Bitcoin mining firm, has announced the sale of its largest mining facility in Paraguay to Hive Digital Technologies for $85 million. The sale, which involves Bitfarms’ 200 megawatt (MW) Yguazu site, will help fund the company’s shift in focus towards expanding its operations in the United States, with a particular emphasis on Bitcoin and artificial intelligence (AI) infrastructure.

Strategic Sale and Focus on U.S. Growth

On January 28, Hive Digital signed a binding letter of intent to acquire one of Bitfarms’ three mining farms in Paraguay. The Yguazu facility, with its substantial 200 MW capacity, was the largest of the three, while the company’s other two facilities in Paraguay—Villarrica (10 MW) and Paso Pe (70 MW)—have a combined capacity of 80 MW.

Bitfarms CEO Ben Gagnon explained that this sale is part of a broader strategic initiative to streamline operations and rebalance the company’s focus towards North America. By the end of 2025, Bitfarms plans to have approximately 80% of its portfolio based in North America, with the remaining 20% located internationally.

Gagnon emphasized that the capital generated from this sale would be reinvested into the company’s ambitious 1 gigawatt (GW) growth pipeline in the U.S., which is focused on Bitcoin mining and high-performance computing (HPC)/AI infrastructure. He remarked, "This marks a significant milestone in our transition from an international Bitcoin miner to a North American energy and compute infrastructure company."

Transition to U.S.-based Assets

This move follows a growing trend among Bitcoin miners to invest in U.S.-based operations, particularly as the country continues to be a hub for crypto mining and emerging AI technologies. In addition to Paraguay, Bitfarms has existing operations in Canada, the U.S., and Argentina, with respective mining capacities of 158.5 MW, 17.5 MW, and 54 MW.

The sale to Hive is expected to close by the end of Q1 2025. Under the terms of the deal, Bitfarms will receive an initial $25 million payment, followed by an additional $31 million over the next six months. The remaining $29 million will be allocated to reimburse power deposits ($19 million) and settle outstanding capital obligations ($10 million).

Gagnon further clarified that the company’s shift toward U.S.-based assets aligns with its broader strategy to diversify beyond Bitcoin mining and take advantage of the growing opportunities in HPC and AI sectors. "This shift is in line with our strategy to capitalize on the significant growth opportunities in HPC/AI," he said.

Impact on Mining Operations and Costs

As part of this restructuring, Bitfarms expects a reduction in its overall Bitcoin mining capacity. The company anticipates a 21% decrease in its Bitcoin mining capacity by the end of the year, accompanied by a 10% reduction in estimated average power costs. Despite these reductions, the company’s focus on North American growth is seen as a long-term strategy to increase efficiency and capture new market opportunities in both the Bitcoin and AI industries.

Conclusion

The sale of the Yguazu mining site to Hive Digital Technologies represents a pivotal moment in Bitfarms’ evolution as it shifts its focus to North America and looks to expand its presence in Bitcoin mining and AI infrastructure. With plans for significant investments in U.S.-based assets, Bitfarms is positioning itself to tap into the growing convergence of blockchain and AI technologies, all while optimizing its operations and cost structure.