HIVE Digital Buys Bitfarms’ Paraguay BTC Mine for $56M

Cryptocurrency

HIVE Digital Buys Bitfarms’ Paraguay BTC Mine for $56M – Crypto News

Published

1 year ago

February 3, 2025

Dripp

HIVE Digital has finalized the acquisition of Bitfarms’ partially completed 200-megawatt Bitcoin mining facility in Yguazú, Paraguay, for $56 million.

The deal includes an upfront payment of $25 million due at closing in the first quarter of 2025, with the remaining $31 million to be paid in six equal monthly installments.

The $56 Million Purchase

According to an announcement HIVE made on January 28, the Yguazú facility will be developed in two stages. Phase 1, which is already 80% finished, is scheduled for completion by April 1, 2025. Once operational in the second quarter, it is expected to add approximately six exahashes per second (EH/s) to HIVE’s Bitcoin mining capacity.

Phase 2, expected to be wrapped up by August 31, 2025, will introduce hydro-cooled Bitmain S21+ ASICs, adding 6.5 EH/s. The Texas-based crypto miner has estimated the cost of completing the facility at $400,000 per MW. It also revealed that it will be funded using existing cash reserves and BTC holdings.

As part of the acquisition, HIVE will assume $19 million in pre-existing power purchase agreement (PPA) deposits that Bitfarms paid to Paraguayan utility ANDE. This aligns with its goal of expanding its Bitcoin mining capacity to 25 EH/s by September 2025.

As of December 2024, the firm reported a realized hashrate of 5.46 EH/s and held 2,805 BTC in its reserves. It has also pre-ordered 15 EH/s of hydro-cooled ASICs from Bitmain and Canaan to support its growth plans.

Bitfarms’ Strategic Shift

The sale of the Yguazú facility marks a strategic shift for Bitfarms, which initially planned to develop the site as part of its 2024 expansion into Latin America. Construction delays led to the relocation of mining equipment originally intended for Paraguay to Stronghold Digital’s Pennsylvania facility as part of a 2024 merger.

CEO Ben Gagnon stated that the proceeds from the sale would support the company’s 1-gigawatt growth pipeline in the U.S., which includes infrastructure for Bitcoin mining as well as high-performance computing and artificial intelligence.

“We are pleased to announce the sale of our Yguazú site to HIVE as we continue to streamline our operations and rebalance towards North America,” Gagnon said.

Bitfarms remains committed to its operations in Latin America, where it has three other facilities with a total capacity of 144 MW and long-term power agreements.

The latest development comes after a proposed merger with Riot Platforms Inc. in 2024, which would have created 15 facilities in several areas, including Paraguay. However, Bitfarms’ board ultimately rejected the plan, with the two companies terminating the acquisition bid.

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