Bitfarms Sells Yguazu Site to HIVE for $85M, Focuses on U.S.

Bitfarms Ltd. has made a strategic move, announcing a sale of its Yguazu site to HIVE Digital for $85 million. This shift aims to enhance its operations in the U.S. market, potentially affecting investor sentiment positively.

Date: 28-01-2025

AI Rating: 7

Overview of the Transaction
Bitfarms Ltd. has entered into a binding Letter of Intent to sell its Yguazu, Paraguay Bitcoin mining site to HIVE Digital Technologies for approximately $85 million. This includes power deposits and remaining capital obligations. The sale is expected to close in Q1 2025.

Financial Aspects
The transaction involves significant cash inflows for Bitfarms, receiving $25 million at closing, $31 million over the next six months, reimbursement of $19 million for power deposits, and roughly $10 million for remaining capital obligations. This inflow of capital could potentially enhance its balance sheet.

Strategic Shift
Bitfarms plans to reinvest the proceeds to bolster its 1 GW growth pipeline in North America for BTC and HPC/AI infrastructure, aligning with a strategy to transition from a Bitcoin miner to a more diversified energy and computing infrastructure provider.

Impact on Operations
This transaction is expected to reduce Bitfarms' average power costs by about 10 percent, significantly lowering capital requirements for 2025. However, it reduces the year-end MW capacity from 955 MW to 755 MW, which could have long-term implications for production capability.

Stocks: BITF HIVE