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- Bitfarms sells final Latin American asset to fund North American
- Thirty million dollar deal accelerates shift from bitcoin mining toward
- Company concentrates energy portfolio in North America to target AI
Bitcoin miner Bitfarms Ltd. has taken a decisive step in reshaping its business by completing a full exit from Latin America. The company stated that the relocation is an extension of its continued dedication to North American energy resources that have the capacity to support AI and high-performance computing processes.
Bitfarms announced on Friday that it had also sold the remainder of its Latin American business, specifically a 70-megawatt mining park in Paraguay. Purchasing the asset will be through the Paso Pe facility, a crypto infrastructure fund operated by Hawksburn Capital, a Singapore-based cryptocurrency fund that Sympatheia Power Fund manages.
According to the agreement’s terms, the total consideration may reach up to $30 million. As a result, Bitfarms will receive $9 million in cash at closure, which includes a non-refundable deposit of $1 million.
To this, a maximum of $21 million will be paid, as per post-closing milestones that are likely to be achieved within 10 months. As observed by management, this structure is expected to accelerate the two to three years of free cash flow anticipated on the site.
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In addition, the transaction concludes a series of years of decline of Latin American presence on the part of Bitfarms. The incoming Chief Executive, Ben Gagnon, stated that the proceeds will be allocated to North American energy infrastructure to support AI and HPC use cases in 2026.
In the meantime, the sale will leave the company’s entire energy portfolio concentrated in North America. Bitfarms has been operating 341 megawatts of energized capacity in the region.
Moreover, the company has 430 megawatts that are actively being developed in the United States. It also has a larger pipeline of development, approximately 2.1 gigawatts in North America, which is a long-term commitment.
Shift reflects broader AI-driven mining strategy.
Notably, Bitfarms’ strategic shift reflects a broader trend among bitcoin miners seeking to diversify. The company finds that North American power markets are more economical and data-centre operators are more promising in terms of demand.
In addition to this, the increasing requirement for facilities with high energy density has compelled miners to consider other options other than the conventional bitcoin-only approach. Bitfarms has already declared that it will transform some of its mining locations to host AI and HPC workloads.
Nevertheless, the company noted that mining bitcoins is also a business strategy. It is now centered on flexible infrastructure to operate in response to numerous computing requirements.
Meanwhile, investors continue to monitor the impact of this transition on valuation. Bitfarms’ stock was trading around $ 2.60 on Thursday, having recovered slightly from its lows, but it was still below its previous highs.
The focus of the market, therefore, remains based on performance and capital investment. As explained by management, the decision to focus resources in North America is intended to provide more consistent returns in the long run.
Finally, the sale of $30 million in Paraguay highlights Bitfarms’ desire to reposition itself beyond geographic diversification. The company has now expanded its North American power assets, focusing on the growing AI computing market as its key growth strategy.
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