Bitfarms, a multinational Bitcoin mining firm, will sell its 200 megawatt (MW) facility in Yguazu, Paraguay, to Hive Digital Technologies — a competing mining and AI company — for approximately $85 million. The capital will be reinvested to strengthen Bitfarms’ capacity in the US.
On Jan. 28, Hive signed a binding letter of intent to purchase one of the three Bitfarms-owned and operated Bitcoin (BTC) mining farms in Paraguay.
Bitfarm’s Bitcoin mining site in Yguazu, Paraguay. Source: Bitfarms
The Yguazu farm was Bitfarms’ largest Bitcoin mining facility in the country. Its other two mining sites, Villarrica and Paso Pe, have a combined capacity of 80 MW, each contributing 10 MW and 70 MW, respectively, according to the company data.
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Speaking about the sale of the Yguazu site, Bitfarms CEO Ben Gagnon said that the move was aimed at streamlining the company’s operations and rebalancing toward North America.
Source: Hive Digital
The company plans to rebalance its portfolio to roughly 80% North American and 20% international by the end of 2025. Gagnon added:
“Bitfarms will be reinvesting the capital from this sale toward its 1 GW growth pipeline in the US for BTC and HPC/AI infrastructure, which marks a significant milestone in our transition from an international Bitcoin miner to a North American energy and compute infrastructure company.”
In addition to Paraguay, Bitfarms is currently operational in Canada, the US and Argentina, with 158.5 MW, 17.5 MW and 54 MW capacities, respectively.
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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:
“This shift toward U.S.-based assets is in line with our 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.
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