1. Bitfarms sold its 70 MW site in Paraguay for up to $30 million. 2. The sale boosts liquidity and allows investment in North American HPC/AI. 3. Bitfarms exits Latin America, focusing entirely on North American operations. 4. New energy portfolio totals 2.1 GW in North America, boosting operational capacity. 5. Expected cash inflows improve financial stability and reinvestment potential for 2026.
FAQ
Why Bullish?
The divestiture enhances liquidity and allows reinvestment in growth sectors, likely boosting investor confidence. Historical examples indicate that strategic exits often lead to improved operational focuses, as seen with other tech companies reallocating resources effectively.
How important is it?
The company's strategic shift and monetary inflow significantly affect future operations and investor sentiment. This realignment could lead to substantial improvements in operational efficiency, impacting market perception.
Why Long Term?
The benefits of the sale will materialize over 2026 as investments in HPC/AI infrastructure begin reaping returns. Similar projects in the tech sector have demonstrated long-term profitability from increased operational efficiencies and targeted investments.
Bitfarms Ltd. Completes Exit from Latin America with $30 Million Sale of Paso Pe Site
TORONTO, Ontario and NEW YORK, January 02, 2026 (GLOBE NEWSWIRE) — Bitfarms Ltd. (NASDAQ/TSX: BITF), a leader in North American energy and digital infrastructure, has announced a significant strategic shift. The company has entered into a definitive share purchase agreement (SPA) to sell its 70 MW Bitcoin mining site in Paso Pe, Paraguay, to the Sympatheia Power Fund (SPF), managed by Singapore-based Hawksburn Capital. This transaction not only marks Bitfarms’ complete exit from Latin America but also rebalances its energy portfolio to focus entirely on North American operations.
Details of the Transaction
The deal is anticipated to close within 60 days, contingent upon meeting customary closing conditions. Bitfarms CEO Ben Gagnon commented on the sale: “I'm pleased to announce the strategic sale of our Paso Pe site and decisive rebalancing of our energy portfolio to 100% North American. This transaction accelerates our plans by two to three years, allowing reinvestment in North American High-Performance Computing (HPC)/Artificial Intelligence (AI) energy infrastructure in 2026, maximizing returns on our capital.”
The transaction is valued at up to $30 million, with the following expected financial components:
- $9 million in cash upon closing, including a $1 million non-refundable deposit already paid by the buyer.
- Up to $21 million over the subsequent 10 months based on agreed payment milestones.
Strategic Implications and Benefits
The sale not only demonstrates a decisive move to consolidate operations but also enhances Bitfarms' liquidity through accelerated monetization of non-core assets. Post-transaction, the company’s energy portfolio will include:
- 341 MW of energized capacity.
- 430 MW currently under active development, all based in the U.S.
- A multi-year pipeline totaling 2.1 GW in North America, with approximately 90% located in the U.S.
Josh Murchie of SPF underscored the importance of this acquisition, stating, “This transaction accelerates SPF’s regional expansion plan, and our priority is an uninterrupted transition ensuring continuity at Paso Pe as we grow.”
About Bitfarms and Future Outlook
Founded in 2017, Bitfarms has emerged as a prominent player in the digital infrastructure sector, focusing on high-performance computing and Bitcoin mining. The company aims to leverage its strong North American presence and energy portfolio to capitalize on the growing demand for HPC and AI technologies.
As Bitfarms (BITF) moves forward post-transaction, it aims to further solidify its market position by reinvesting into energy and data center infrastructure strategically aligned with future technological advancements.
Looking Ahead
Investors and stakeholders will be keenly watching how Bitfarms navigates this transformation and leverages its specialized capabilities in the evolving landscape of digital infrastructure. With its share price under the ticker BITF, the company is positioned for potential growth in a rapidly changing market environment.