Bitfarms completes $30 million deal to sell Paraguay mining farm, shifts focus to North American AI infrastructure

Bitcoin mining company Bitfarms recently announced a significant asset transaction, planning to sell its Paraguay Paso Peguero mining farm for up to $30 million. This move marks a major adjustment in the company’s mining footprint in South America. The buyer is Sympatheia Power Fund (SPF), managed by Hawksburn Capital in Singapore.

Major Disposal of South American Mining Assets and Complete Exit from the Paraguay Market

Bitfarms’ decision to sell the Paraguay mining farm completes the company’s strategic retreat in Latin America. According to the transaction terms, Bitfarms will initially receive $9 million, with up to an additional $21 million payable over the next 10 months based on installment payment milestones. This installment payment structure provides Bitfarms with more flexible cash management options.

Notably, this is not the first time Bitfarms has disposed of assets in Paraguay. Less than a year ago, the company sold another mine located in Iguazu to Bitcoin mining company Hive Digital Technologies (HIVE). These series of actions clearly indicate that Bitfarms is consciously reducing its operational scale in South America.

Installment Payment Structure Design and Early Cash Flow Release

The transaction is expected to be completed within the next 60 days. The key highlight of the deal is its phased payment arrangement, allowing Bitfarms to access operational cash flow earlier. CEO Ben Gagnon stated in an official release that this deal will bring forward operational free cash flow that would have otherwise been realized in two to three years.

This cash release is crucial for Bitfarms’ business shift. The company plans to reinvest these funds into high-performance computing (HPC) and artificial intelligence (AI) energy infrastructure development in North America by 2026. Management believes that focusing on HPC/AI sectors will enable Bitfarms to achieve stronger returns on invested capital.

Transition from Mining to AI Infrastructure, a New Battlefield for Miners

Bitfarms’ strategic shift reflects the profound changes facing the entire cryptocurrency mining industry. Transitioning from Bitcoin mining to AI infrastructure energy supply has become a significant trend in the industry. By selling traditional mines in Paraguay and other locations, Bitfarms is streamlining operations to prepare for a new round of competition in the North American market.

Following the announcement, Bitfarms’ stock (BITF) rose about 4% in pre-market trading, closing at $2.45. The market responded positively to this strategic adjustment. Meanwhile, Bitcoin’s price hovered around $78.24K at the time of the announcement, indicating that the entire crypto asset market is entering a new period of opportunity. These series of changes suggest that the competitive landscape of mining companies is undergoing a profound reshaping.