Bitfarms has sold its Yguazu, Paraguay data center for $85 million, transitioning to a North American focus. The sale reduces 2025 capex requirements, lowers power costs by 10%, and rebalances operations to 80% North America. Proceeds will fund U.S. growth in Bitcoin mining and HPC infrastructure.
Bitfarms has successfully sold its 200 MW data center located in Yguazu, Paraguay, to HIVE Digital Technologies for an approximate amount of $85 million. This strategic sale marks a significant transition for Bitfarms as it shifts focus from being an international Bitcoin miner to a company specializing in North American energy and computational infrastructure.
The sale is projected to yield several benefits for Bitfarms. These include a reduction in capital expenditure (capex) requirements for 2025, a decrease in average energy costs by 10%, and a restructuring of the company’s operational portfolio to ensure that 80% of operations are based in North America while 20% remain international by the end of 2025. The proceeds from the sale will be reinvested into Bitfarms’ growth pipeline in the United States, targeting Bitcoin mining and high-performance computing (HPC) infrastructure.
In a statement, Bitfarms CEO, Ben Gagnon, expressed satisfaction with the swift completion of the transaction, indicating that it allows for a streamlining of operations and a realignment towards North America. This development is anticipated to positively impact the company’s portfolio composition and operational efficiency. CFO, Jeff Lucas, added that the sale will significantly mitigate the company’s capital expenditures for 2025.
Founded in 2017, Bitfarms operates globally with a network of 15 Bitcoin data centers across the United States, Canada, Paraguay, and Argentina. The company is committed to sustainable energy practices, utilizing hydroelectric power and entering long-term power contracts to support its operations. The company remains focused on growing its capabilities in cryptocurrency mining and high-performance computing.
The successful sale of the Yguazu data center to HIVE Digital Technologies represents a strategic pivot for Bitfarms towards consolidating operations in North America. This transaction is expected to reduce future capital expenditures significantly while lowering power costs and rebalancing the operational portfolio. As Bitfarms reinvest the proceeds into U.S. expansion efforts, it aims to enhance its position in both Bitcoin mining and high-performance computing sectors, thereby solidifying its business model.
Original Source: www.stocktitan.net
