Bitfarms Ltd. (BITF), a vertically integrated Bitcoin data center company, on Tuesday announced that it has entered into a binding Letter of Intent to sell its 200 MW site in Yguazu, Paraguay to HIVE Digital Technologies, Ltd (HIVE).
Accordingly, HIVE would purchase from Bitfarms its 100 percent ownership stake of its Yguazu, Paraguay Bitcoin mining site valued at approximately $85 million, inclusive of approximately $19 million of power deposits with ANDE and the assumption of remaining capital obligations.
The transaction is expected to close in the first quarter of 2025.
Bitfarms would receive $25 million upon closing of this transaction, $31 million over 6 months following closing, $19 million as reimbursement for power deposits made to ANDE by Bitfarms and approximately $10 million in remaining capital obligations.
Bitfarms would be reinvesting the capital from this sale towards its 1 GW growth pipeline in the U.S. for BTC and HPC/AI infrastructure enabling the transition from an international Bitcoin miner to a North American energy and compute infrastructure company.
The company said that the shift towards U.S.-based assets is in-line with its strategy to diversify beyond Bitcoin mining and capitalize on the significant growth opportunities in High Performance Computing / Artificial Intelligence.
The deal is also expected to rebalance Bitfarm's portfolio to approximately 80 percent North American and 20 percent international by year ending 2025, with the acquisition of Stronghold Digital Mining, which is anticipated to close in the next couple of months.
The deal is expected to reduce Bitfarm's estimated average power costs by approximately 10 percent and also significantly reduce its anticipated 2025 capital requirements.
The transaction does not impact miner deployment schedule. It however reduces the year end 2025 MW capacity from 955 MW to 755 MW.
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