Bitfarms has sold its 200 MW data center in Yguazu, Paraguay to HIVE Digital Technologies for approximately $85 million. This sale aligns with its strategic transition towards North American operations, expected to reduce capex needs and lower power costs. The company plans to reinvest the proceeds into U.S. growth opportunities for Bitcoin mining and HPC/AI infrastructure, aiming for an operational balance of 80% North American presence by 2025.
Bitfarms Ltd. has successfully concluded the sale of its 200 MW data center located in Yguazu, Paraguay, to HIVE Digital Technologies for approximately $85 million. This strategic decision marks a significant transition for Bitfarms as it shifts from an international Bitcoin mining operation to a North American energy and computing infrastructure provider.
The effects of the sale are anticipated to be positive, including a reduction in capital expenditure requirements for 2025, a 10% decrease in average power costs, and a rebalancing of the company’s operations to achieve around 80% presence in North America by the end of 2025. Furthermore, highlights include plans to reinvest proceeds into a growth pipeline of 1.1 GW in the United States, focused on Bitcoin mining and high-performance computing (HPC) and artificial intelligence (AI) infrastructure.
Bitfarms has reiterated its commitment to sustainability as it operates 15 data centers across the United States, Canada, Paraguay, and Argentina, primarily utilizing eco-friendly hydroelectric power. With this strategic restructuring, the company aims to solidify its position within the North American market gradually.
The company’s Chief Executive Officer, Ben Gagnon expressed satisfaction with the timely completion of this transaction, emphasizing the significance of streamlining operations and enhancing the North American portfolio. Simultaneously, Chief Financial Officer, Jeff Lucas noted that this sale would notably decrease future capital expenditure obligations and reduce energy costs for the organization.
In conclusion, the sale of the Yguazu data center represents a pivotal move for Bitfarms as it accommodates a strategic realignment towards North American operations. The company seeks to leverage reinvested proceeds for expansion, thereby enhancing its energy and computational capabilities in a growing market.
To learn more about Bitfarms, visit their official site and various social media platforms.
In summary, Bitfarms’ strategic divestiture from its Yguazu, Paraguay data center illustrates a focused shift towards North American operations. This transition aims to reduce operational costs, enhance capital expenditure management, and solidify its growth in Bitcoin mining and advanced computational capabilities. The move is indicative of the company’s commitment to sustainability and ongoing expansion efforts within the North American market.
Original Source: www.stocktitan.net
