Bitfarms Ltd. has sold its 200 MW data center in Paraguay for $85 million, focusing on North American operations. The sale aims to reduce capital expenditures and power costs, reallocating resources toward a 1.1 GW growth pipeline in the U.S. This shift enhances operational efficiency and underscores Bitfarms’ commitment to sustainability.
Bitfarms Ltd. has completed the sale of its 200 MW data center in Yguazu, Paraguay, to HIVE Digital Technologies for approximately U.S. $85 million. This strategic decision facilitates Bitfarms’ transformation from an international Bitcoin mining operation to a North American energy and computing infrastructure firm. The sale is projected to significantly reduce the company’s capital expenditure requirements for 2025 and lower average power costs by 10%. By the end of 2025, the company’s operational focus will shift to approximately 80% North American and 20% international.
The implications of this transaction include a reduction in operational diversity internationally and a loss of the 200 MW operational capacity that was previously based in Paraguay. Moreover, Bitfarms plans to reinvest the proceeds from this sale into a 1.1 GW growth pipeline in the United States, aimed at enhancing Bitcoin mining and high-performance computing/ artificial intelligence (HPC/AI) infrastructure.
With this strategic shift, Bitfarms aims to streamline its operations and position itself favorably within the expanding North American market. The company’s Chief Executive Officer, Ben Gagnon, expressed satisfaction with the swift completion of the sale, indicating that it allows for better alignment of resources towards North American operations. The Chief Financial Officer, Jeff Lucas, highlighted that this accretive transaction is expected to materially decrease Bitfarms’ capital expenditures while simultaneously reducing energy costs.
Founded in 2017, Bitfarms is a globally recognized Bitcoin and vertically integrated data center company. The firm operates various Bitcoin mining facilities primarily powered by renewable energy sources, which showcases its commitment to sustainability. Presently, Bitfarms maintains 15 operational Bitcoin data centers across the United States, Canada, Paraguay, and Argentina, leveraging hydropower and long-term contracts to ensure efficient operational protocols.
Bitfarms encourages stakeholders and interested parties to stay updated about its developments through its official channels.
In summary, Bitfarms has successfully executed a significant strategic sale of its Paraguay data center, marking a pivotal transition to a North American-centric business model. Anticipated advantages include reduced capital expenditures and operational costs, alongside a balanced operational structure favoring North America. The firm plans to reallocate funds from this sale to further develop its growth initiatives in the United States, while simultaneously emphasizing its commitment to sustainable practices in Bitcoin mining.
Original Source: www.stocktitan.net
