Bitfarms Ltd. announced the completion of a strategic sale of its Yguazu, Paraguay data center to HIVE Digital Technologies for about $85 million. This transaction is part of Bitfarms’ goal to prioritize North American operations, expected to constitute 80% of its energy portfolio. The company will reinvest the capital in U.S. growth opportunities, aiming to enhance its Bitcoin mining and HPC/AI infrastructure.
Bitfarms Ltd., a leading global Bitcoin and vertically integrated data center company based in Toronto, has successfully finalized the sale of its 200 megawatt (MW) data center located in Yguazu, Paraguay to HIVE Digital Technologies, Ltd. The transaction is valued at approximately $85 million USD and aligns with Bitfarms’ strategy to focus more on opportunities within North America. This sale is anticipated to enable the company to rebalance its portfolio and streamline its operations effectively.
The Chief Executive Officer of Bitfarms, Mr. Ben Gagnon, expressed satisfaction with the swift completion of this transaction, noting that it marks a pivotal shift towards enhancing their presence in North America. He outlined that the company’s energy portfolio is now expected to consist of roughly 80% from North America and 20% internationally by the end of 2025.
Mr. Jeff Lucas, the Chief Financial Officer, indicated that the proceeds from the sale would significantly reduce the company’s capital expenditure needs for 2025, while also contributing to a 10% decrease in average power costs. The company intends to reinvest these savings into its robust U.S. growth pipeline focused on Bitcoin mining and high-performance computing/artificial intelligence (HPC/AI) infrastructure.
Established in 2017, Bitfarms operates 15 data centers across the United States, Canada, Paraguay, and Argentina. The company emphasizes environmentally sustainable operations, primarily utilizing hydroelectric power and long-term energy contracts. As a vertically integrated entity, Bitfarms develops, manages, and operates its mining facilities with proprietary technical capabilities.
The forward-looking statements in this news release, regarding future growth, investment strategies, and operational adjustments, are based on management’s estimates and are subject to various risks and uncertainties that could cause actual results to diverge significantly from predictions. Stakeholders are encouraged to review Bitfarms’ filings for more detailed risk factors.
In summary, Bitfarms’ sale of its Yguazu data center represents a strategic decision to concentrate on North American operations. This move is expected to bolster the company’s market position by reducing costs and reallocating resources towards higher growth potential domains such as Bitcoin mining and AI infrastructure. The forward-looking vision underscores Bitfarms’ commitment to sustainable practices and technological advancement in the cryptocurrency sector.
Original Source: financialpost.com
