HIVE Digital has finalized the acquisition of Bitfarms’ partially accomplished 200-megawatt Bitcoin mining facility in Yguazú, Paraguay, for $56 million.
The deal contains an upfront cost of $25 million due at closing within the first quarter of 2025, with the remaining $31 million to be paid in six equal month-to-month installments.
The $56 Million Buy
In line with an announcement HIVE made on January 28, the Yguazú facility will probably be developed in two phases. Section 1, which is already 80% completed, is scheduled for completion by April 1, 2025. As soon as operational within the second quarter, it’s anticipated so as to add roughly six exahashes per second (EH/s) to HIVE’s Bitcoin mining capability.
Section 2, anticipated to be wrapped up by August 31, 2025, will introduce hydro-cooled Bitmain S21+ ASICs, including 6.5 EH/s. The Texas-based crypto miner has estimated the price of finishing the ability at $400,000 per MW. It additionally revealed that it will likely be funded utilizing present money reserves and BTC holdings.
As a part of the acquisition, HIVE will assume $19 million in pre-existing energy buy settlement (PPA) deposits that Bitfarms paid to Paraguayan utility ANDE. This aligns with its objective of increasing its Bitcoin mining capability to 25 EH/s by September 2025.
As of December 2024, the agency reported a realized hashrate of 5.46 EH/s and held 2,805 BTC in its reserves. It has additionally pre-ordered 15 EH/s of hydro-cooled ASICs from Bitmain and Canaan to help its progress plans.
Bitfarms’ Strategic Shift
The sale of the Yguazú facility marks a strategic shift for Bitfarms, which initially deliberate to develop the location as a part of its 2024 growth into Latin America. Building delays led to the relocation of mining gear initially supposed for Paraguay to Stronghold Digital’s Pennsylvania facility as a part of a 2024 merger.
CEO Ben Gagnon stated that the proceeds from the sale would help the corporate’s 1-gigawatt progress pipeline within the U.S., which incorporates infrastructure for Bitcoin mining in addition to high-performance computing and synthetic intelligence.
“We’re happy to announce the sale of our Yguazú website to HIVE as we proceed to streamline our operations and rebalance in the direction of North America,” Gagnon stated.
Bitfarms stays dedicated to its operations in Latin America, the place it has three different services with a complete capability of 144 MW and long-term energy agreements.
The newest growth comes after a proposed merger with Riot Platforms Inc. in 2024, which might have created 15 services in a number of areas, together with Paraguay. Nevertheless, Bitfarms’ board finally rejected the plan, with the 2 corporations terminating the acquisition bid.
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