TORONTO, ONTARIO – Bitfarms Ltd. (NASDAQ/TSX: BITF), a global Bitcoin mining and vertically integrated data center company, today announced the successful completion of the sale of its 200 MW data center in the Iguazu region of Paraguay to HIVE Digital Technologies, Ltd. ("HIVE").
Ben Gagnon, CEO of Bitfarms, stated, "We are pleased to have rapidly completed the sale of the Iguazu site to HIVE. This sale allows us to streamline our operations and further realign our portfolio towards North America. We now anticipate that by the end of 2025, our pro forma energy portfolio will consist of approximately 80% North America and approximately 20% international markets, marking a significant milestone in our transition from an international Bitcoin mining company to a North American energy and computing infrastructure company."
Jeff Lucas, CFO of Bitfarms, added, "This asset sale is expected to significantly reduce our 2025 capital expenditure requirements while also decreasing our average power costs by 10%. The funds and savings realized from this sale will be reinvested into our 1.1 GW pipeline of Bitcoin mining and HPC/AI infrastructure growth in the United States, aligning with our strategy for growth within the U.S. and diversification beyond Bitcoin mining."
Bitfarms Ltd.: From Cryptocurrency Mining Leader to Diversified Data Center Company
Bitfarms Ltd. (NASDAQ/TSX: BITF), headquartered in Toronto, Canada, is a global blockchain technology company primarily focused on providing computing power to cryptocurrency networks through Bitcoin mining. Founded in 2017, the company verifies transactions on the Bitcoin blockchain and earns rewards through server farms operating in North and South America and other regions. Bitfarms has expanded its operations across Canada, the United States, Paraguay, and Argentina, gaining attention in the industry for its use of sustainable energy and efficient mining technologies.
Beyond being a mining company, Bitfarms is pursuing a future-oriented strategy by exploring business diversification into high-performance computing (HPC) and artificial intelligence (AI) data centers. As of March 27, 2025, the company is leveraging the volatility and technological evolution of the cryptocurrency market to build a sustainable growth model.
Key Achievements in 2024
Bitfarms recorded remarkable operational achievements in 2024. Its annual hashrate increased by 97% to 12.8 EH/s (exahashes per second), and energy efficiency improved by 40% to 21 w/TH (watts per terahash). These figures surpass the industry average, demonstrating Bitfarms' technological advantage. Additionally, the company mined a total of 2,914 Bitcoins in 2024, expanded its operating scale by 35%, and secured 324 MW (megawatts) of power capacity.
The company's financial status is also noteworthy. According to its fourth-quarter 2024 earnings report, Bitfarms recorded revenue of $56 million, a 21% increase from the previous quarter, and a net income of $15 million ($0.03 per share). It maintained a stable financial structure with $60 million in cash holdings and high liquidity relative to debt (current ratio of 3.7x).
Strategic Expansion: Acquisition of Stronghold and Transition to HPC/AI
Bitfarms recently strengthened its position in the North American market through the acquisition of Stronghold Digital Mining in the United States. This acquisition increased Bitfarms' energy portfolio to 623 MW and secured a 1.1 GW growth pipeline in the Pennsylvania region. This transaction is considered the largest acquisition between two publicly traded Bitcoin mining companies in history, with expectations of synergies in operational efficiency and energy resource utilization.
Furthermore, Bitfarms is actively seeking a transition beyond mining into HPC and AI data centers. In January 2025, the company hired two consulting firms, Appleby Strategy Group and World Wide Technology, to begin analyzing the potential for HPC/AI conversion at its North American sites. CEO Ben Gagnon stated that "contracts with HPC/AI clients provide long-term, stable cash flow, while Bitcoin mining still allows us to leverage flexible revenue potential," adding that this strategy will maximize shareholder value.
In line with this, Bitfarms sold its 200 MW mining site in Paraguay to HIVE Digital Technologies for $85 million, redeploying capital and focusing on North American HPC/AI infrastructure.
Stock Price and Market Reaction
Despite these achievements, Bitfarms' stock price has faced challenges in 2025. On March 26, the stock price fell to a 52-week low of $0.99, impacted by market downturns. This appears to be a result of a combination of factors, including Bitcoin price volatility, decreased mining profitability (hashprice), and a recent restatement of financial statements (correction of accounting errors for 2022 and 2023) leading to a decline in investor confidence. Nevertheless, some analysts believe the current stock price is undervalued and view the long-term growth potential positively.
Challenges and Outlook
Bitfarms faces several challenges. First, the profitability of Bitcoin mining is under pressure due to increasing network difficulty and market price fluctuations. Second, the transition to HPC/AI involves initial investment costs and technical complexities. Additionally, recent news of securities-related investigations by law firms has negatively impacted the stock price and increased uncertainty.
Despite these challenges, Bitfarms maintains a positive outlook based on its strong operational foundation and strategic vision. The surge in Bitcoin prices, which surpassed $100,000 in late 2024, and the increasing interest in cryptocurrency-related stocks, along with the rapid growth of the AI industry driving data center demand, create a favorable environment for Bitfarms. If the company successfully executes its energy efficiency and diversification strategies, it has a high potential to become a long-term leader in the industry.
Bitfarms Ltd. has established itself as a strong player in Bitcoin mining and is now redefining its business through new growth engines in HPC and AI. While its outstanding performance in 2024 and strategic acquisitions demonstrate its potential, short-term stock declines and market uncertainties are factors that investors should carefully consider. With Bitfarms positioned at the intersection of two major trends – cryptocurrency and AI – the industry and investors are keenly watching its future moves.
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