In a move to bolster its U.S. operations, Bitfarms, a prominent Bitcoin mining company, has reportedly announced the sale of its largest Paraguay mining facility to Hive Digital Technologies for $85 million. The transaction, set to close by the end of Q1 2025, signifies Bitfarms’ shift towards expanding its infrastructure in the U.S. and focusing on high-performance computing (HPC) and artificial intelligence (AI).
Bitfarms Sells Largest Paraguay Site to Hive for $85M
On January 28, Bitfarms signed a binding letter of intent to sell its 200-megawatt (MW) Bitcoin mining facility in Yguazu, Paraguay, to Hive Digital Technologies, a competitor in the Bitcoin mining and AI sectors. According to Bitfarms CEO Ben Gagnon, this sale aligns with the company’s strategy to streamline operations and shift focus to the U.S. market.
“Our plan is to rebalance our portfolio, focusing 80% on North America and 20% internationally by the end of 2025,”
Gagnon stated. The Yguazu site, which was Bitfarms’ largest facility in Paraguay, was one of three in the country. The other two, Villarrica and Paso Pe, contribute a combined capacity of 80 MW.
The deal involves an initial payment of $25 million at closing, with Hive agreeing to pay $31 million over the subsequent six months. An additional $19 million will cover power deposit reimbursements, and $10 million will address capital obligations.
Bitfarms Refocuses on U.S. Bitcoin and AI Expansion
The decision to sell the Yguazu site stems from Bitfarm renewed focus on the U.S. market. Bitfarms plans to reinvest the proceeds into its 1-gigawatt (GW) growth pipeline in the U.S., emphasizing both Bitcoin mining and the rapidly growing AI infrastructure.
“This transition is a significant milestone in our journey from an international Bitcoin miner to a North American energy and compute infrastructure company,” Gagnon explained.
Bitfarms operates across Canada, the U.S., and Argentina, with current capacities of 158.5 MW, 17.5 MW, and 54 MW, respectively. The shift to U.S.-based assets is expected to diversify its portfolio while reducing costs and improving operational efficiencies.
Hive Digital Expands Mining and AI Footprint
For Hive Digital Technologies, the acquisition of the Yguazu site is a strategic move to expand its mining and AI data center operations. The Paraguay facility, known for its 200 MW capacity and access to low-cost renewable energy, represents a significant boost to Hive’s global infrastructure.
The sale reflects an industry-wide trend where Bitcoin mining firms are increasingly investing in AI and high-performance computing. With rising interest in artificial intelligence, companies like Hive are seizing opportunities to pivot their infrastructure to meet evolving technological demands.
Conclusion
Bitfarms’ sale of its largest Paraguay site to Hive Digital Technologies for $85 million underscores the company’s strategic pivot towards U.S. expansion and AI infrastructure. As the deal finalizes, both companies are poised to strengthen their positions in their respective markets. The transaction reflects the growing convergence of Bitcoin mining and AI, highlighting a transformative period for the industry. Keep following Deythere and keep an eye on crypto developments.
FAQs
- Why did Bitfarms sell its Paraguay site?
Bitfarms sold its largest Paraguay site to Hive Digital Technologies to streamline its operations and focus on U.S. expansion, emphasizing Bitcoin and AI infrastructure.
- What is the value of the transaction?
The deal is valued at $85 million, with an initial payment of $25 million followed by additional payments over six months.
- How does Hive benefit from the acquisition?
Hive Digital gains a 200 MW facility in Paraguay, strengthening its global mining and AI data center operations.
- What does this mean for the future of Bitcoin mining?
The sale reflects an industry trend of diversification, with mining firms increasingly investing in AI and high-performance computing.
- Where else does Bitfarms operate?
Bitfarms operates in Canada, the U.S., and Argentina, with capacities of 158.5 MW, 17.5 MW, and 54 MW, respectively.
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