Bitfarms to Sell Paraguay Facility to Hive Digital for $85M, Redirecting Focus to U.S. Expansion

Bitfarms to Sell Paraguay Facility to Hive Digital for $85M, Redirecting Focus to U.S. Expansion

Bitfarms, a global Bitcoin mining company, has announced the sale of its 200-megawatt (MW) mining facility in Yguazu, Paraguay, to Hive Digital Technologies, a competing firm specializing in Bitcoin mining and AI infrastructure. The transaction, valued at approximately $85 million, marks a strategic move by Bitfarms to concentrate its growth efforts on expanding its operations in the United States.

Hive Digital to Acquire Bitfarms’ Largest Paraguay Facility

On January 28, Hive Digital signed a binding letter of intent to purchase the Yguazu site, the largest of Bitfarms’ three facilities in Paraguay. The other two sites—Villarrica and Paso Pe—have a combined capacity of 80 MW, with Villarrica contributing 10 MW and Paso Pe 70 MW, according to company data.

This acquisition is expected to close by the end of Q1 2025, with Hive making an initial payment of $25 million. The remaining balance will be settled in phases: $31 million over the following six months, $19 million in reimbursements for power deposits, and $10 million to cover remaining capital obligations.

Rebalancing Towards North America

Commenting on the sale, Bitfarms CEO Ben Gagnon explained that the decision aligns with the company’s strategy to streamline operations and shift its focus to North America. Bitfarms aims to achieve a portfolio balance of 80% North American and 20% international operations by the end of 2025.

“Bitfarms will reinvest the proceeds from this sale into our 1 GW growth pipeline in the U.S., strengthening our capabilities in Bitcoin mining and HPC/AI infrastructure,” Gagnon stated. “This marks a significant milestone as we transition into a North American-focused energy and compute infrastructure provider.”

Currently, Bitfarms operates facilities in Canada, the U.S., Argentina, and Paraguay, with respective capacities of 158.5 MW, 17.5 MW, 54 MW, and 200 MW. The sale of the Yguazu facility will result in a 21% reduction in Bitfarms’ global Bitcoin mining capacity. However, the company expects a 10% reduction in average power costs by year-end.

Emerging Opportunities in AI and High-Performance Computing

Bitfarms’ decision to divest its Yguazu site underscores its pivot toward emerging opportunities in high-performance computing (HPC) and artificial intelligence (AI). By focusing on U.S.-based assets, Bitfarms plans to position itself as a leader in the evolving energy and compute infrastructure space.

This strategic shift comes as part of broader efforts to diversify beyond traditional Bitcoin mining and capitalize on the significant growth potential in the HPC/AI sectors, according to Gagnon.

The sale of the Yguazu facility to Hive Digital Technologies not only underscores the changing dynamics in the Bitcoin mining industry but also highlights the growing convergence between cryptocurrency mining and AI-driven technologies.