Bitfarms Sells 70 MW Mining Facility in Paraguay for $30M, Exits South America to Focus on North American Expansion
- Why Is Bitfarms Exiting South America?
- What’s the Financial Breakdown of the Deal?
- How Does This Reflect Industry Trends?
- What’s Next for Bitfarms?
- How Are Markets Reacting?
- FAQs: Bitfarms’ Paraguay Exit and Future Plans
In a strategic move to streamline its operations, bitcoin mining giant Bitfarms has sold its 70-megawatt (MW) facility in Paraguay for $30 million, marking its complete exit from South America. The sale to Singapore-based Hawksburn Capital, via the Sympatheia Power Fund, accelerates Bitfarms' pivot toward North American high-performance computing (HPC) and AI infrastructure. Here’s a deep dive into the implications, financials, and industry trends behind this decision.
Why Is Bitfarms Exiting South America?
Bitfarms’ sale of its Paso Pe facility aligns with its broader strategy to consolidate operations in North America, where it aims to leverage cheaper energy contracts and regulatory stability. CEO Ben Gagnon emphasized that the deal unlocks 2–3 years of operational cash Flow upfront, which will be reinvested into expanding its U.S. and Canadian data centers. The company’s total energy capacity now stands at 341 MW, with another 430 MW under development, targeting 2.1 GW by 2026—90% of which will be U.S.-based.
What’s the Financial Breakdown of the Deal?
The $30 million transaction includes $9 million in cash and up to $21 million paid over 10 months. This liquidity boost comes alongside Bitfarms’ recent $300 million credit facility secured in April 2025, earmarked for scaling its HPC/AI infrastructure. Notably, Bitfarms holds 1,827 BTC ($65 million at current prices) and operates at 19.5 EH/s, positioning it among the top publicly traded miners by hash rate.
How Does This Reflect Industry Trends?
Bitfarms isn’t alone in pivoting toward AI and HPC. Competitors like Riot Platforms and Iris Energy (IREN) are also repurposing mining sites for high-availability data centers, capitalizing on the AI boom. The shift comes as Bitcoin mining margins tighten post-halving, making diversified revenue streams critical. BITF shares surged 32% over the past year, outperforming many peers, per TradingView data.
What’s Next for Bitfarms?
The company’s roadmap includes deploying advanced immersion-cooling systems in Quebec and expanding its Texas footprint. Its Paraguay facility, now under Sympatheia’s Latin America expansion plan, will continue mining without operational disruptions. Bitfarms’ focus on "Tier 1" jurisdictions (like the U.S. and Canada) mirrors industry-wide risk mitigation strategies post-2024’s regulatory crackdowns in Kazakhstan and Iran.
How Are Markets Reacting?
BITF traded at $2.96 post-announcement, with analysts citing the sale’s cash-flow acceleration as a bullish signal. The stock’s resilience contrasts with broader crypto market volatility, per CoinMarketCap. Smaller miners like Bitfarms are increasingly seen as acquisition targets, given their infrastructure and power contracts—key assets in the AI arms race.
FAQs: Bitfarms’ Paraguay Exit and Future Plans
Why did Bitfarms sell its Paraguay facility?
To refocus on North America, where energy costs and regulatory conditions are more favorable for large-scale mining and HPC projects.
Who bought the Paraguay site?
Singapore’s Hawksburn Capital, via the Sympatheia Power Fund, which specializes in crypto infrastructure investments.
Will Bitfarms’ hash rate decline after the sale?
No—the Paraguay facility contributed under 5% of its total 19.5 EH/s capacity. New U.S. expansions will offset this.
Is Bitfarms moving into AI?
Indirectly. Its energy infrastructure is being optimized for HPC workloads, including AI data centers, though Bitcoin mining remains its Core revenue driver.
