Bitfarms Ltd. successfully completed the $85 million sale of its Yguazu data center to HIVE Digital Technologies. The company plans to utilize the proceeds to enhance its North American operations, targeting an 80% presence in that region by 2025. This strategic move is expected to significantly cut costs and support growth in Bitcoin mining and HPC/AI infrastructure.
Bitfarms Ltd. announced the completion of its strategic sale of the Yguazu data center in Paraguay to HIVE Digital Technologies, Ltd. The transaction is valued at approximately $85 million and aims to streamline operations and direct focus toward U.S. growth opportunities. This development marks a pivotal change in Bitfarms’ energy portfolio, moving towards a 80% North American and 20% international presence by the end of 2025.
CEO Ben Gagnon expressed satisfaction with the quick resolution of the sale, emphasizing its importance in enhancing operational efficiency. The sale is projected to significantly lower the company’s capital expenditures in 2025, as CFO Jeff Lucas noted the expected reduction in average power costs by 10%. The resources from this transaction will be invested into a 1.1 GW growth pipeline for Bitcoin mining and High-Performance Computing (HPC) and artificial intelligence (AI) infrastructure in the United States.
Established in 2017, Bitfarms operates globally, with 15 functioning Bitcoin data centers across the U.S., Canada, Paraguay, and Argentina. The company focuses on sustainability through the use of renewable energy, specifically hydroelectricity and long-term power contracts. Bitfarms remains committed to developing efficient mining facilities with internal management and technical support systems.
Bitfarms’ recent $85 million sale of its Yguazu data center paves the way for the company to concentrate its efforts on North American growth. With a strategic pivot that aims for an 80% North American energy portfolio by 2025, this transaction is anticipated to enhance operational efficiency and lower costs. The reinvestment of resources from this sale into expanding its Bitcoin mining and HPC/AI infrastructure marks a significant step in the company’s evolution.
Original Source: financialpost.com
