Bitfarms Sells Largest Paraguay Mining Farm to Hive Digital for $85M to Focus on U.S. Expansion

Bitfarms is selling its largest mining farm in Paraguay to Hive Digital Technologies for about $85 million. This move helps Bitfarms focus on expanding its operations in the United States, especially in Bitcoin and AI infrastructure.

The sale involves a 200 megawatt (MW) facility in Yguazu, Paraguay. This site is Bitfarms’ biggest Bitcoin mining operation in the country. The funds from this sale will be reinvested to boost their capacity in the U.S. market.

On January 28, Hive signed a binding letter of intent to buy one of the three Bitcoin mining farms owned by Bitfarms in Paraguay. The other two sites, Villarrica and Paso Pe, have a combined capacity of 80 MW, contributing 10 MW and 70 MW, respectively.

CEO Ben Gagnon explained that this sale aims to streamline operations and shift the company’s focus toward North America. By the end of 2025, Bitfarms plans to adjust its portfolio to about 80% North American operations and 20% international. Gagnon stated, “Bitfarms will reinvest the capital from this sale into its 1 GW growth pipeline in the U.S. for BTC and HPC/AI infrastructure. This marks a significant milestone in our transition from an international Bitcoin miner to a North American energy and compute infrastructure company.”

Currently, Bitfarms operates in Canada, the U.S., and Argentina, with capacities of 158.5 MW, 17.5 MW, and 54 MW, respectively.

The deal between Hive and Bitfarms is expected to close by the end of the first quarter of 2025. Bitfarms will receive an initial payment of $25 million, followed by another $31 million over the next six months. Out of the remaining $29 million, $19 million will cover power deposit reimbursements, and $10 million will address outstanding capital obligations.

Gagnon emphasized, “This shift toward U.S.-based assets aligns with our strategy to diversify beyond Bitcoin mining and seize significant growth opportunities in HPC/AI.”

As Bitfarms restructures, it anticipates a 21% reduction in Bitcoin mining capacity and a 10% decrease in average power costs by year-end.