Bitfarms Advances Strategic Shift by Divesting Latin American Asset to Bolster North American Ventures

Bitfarms Ltd. (NASDAQ: BITF), a company positioned within the digital asset mining and energy sectors, reported a notable uptick in its stock price on Friday subsequent to declaring its intent to sell its remaining operational facility in Latin America. This sale signifies a strategic pivot toward consolidating its energy portfolio in North America, emphasizing investments aligned with high-performance computing (HPC) and artificial intelligence (AI) infrastructure. The asset in question is the 70-megawatt Paso Pe power facility situated in Paraguay. Bitfarms has entered into an agreement with Sympatheia Power Fund, a fund managed by Hawksburn Capital headquartered in Singapore, to transfer ownership of the subsidiary that possesses all associated Paso Pe assets. This divestiture is valued at approximately $30 million, structured with an initial closing payment of $9 million, which is partially secured by a non-refundable deposit. Additional milestone payments are scheduled over a subsequent period of 10 months. The completion of this transaction is projected to occur within a 60-day time frame, contingent upon customary closing conditions. This deal marks Bitfarms’ formal exit from the Latin American energy market, realigning the company’s asset base exclusively within the North American region. CEO Ben Gagnon elucidated that this exit is expected to expedite cash generation that might otherwise materialize over several years. The proceeds from the divestment will be strategically allocated to power projects within North America tailored for HPC and AI applications anticipated in 2026. This refocused capital deployment is expected to yield more favorable returns, reflecting the company’s intent to concentrate on markets providing enhanced operational efficiencies and financial performance. From the purchaser’s perspective, Josh Murchie of Sympatheia Power Fund highlighted that the acquisition aligns with the fund’s regional growth ambitions and supports ongoing operational stability for the facility. Upon closing, Bitfarms will maintain an exclusive presence in the North American energy sector, encompassing currently owned capacity, ongoing projects within the United States, and a multi-year development pipeline intended to facilitate sustained expansion. This geographic consolidation supports a more streamlined operational focus, potentially facilitating improved cost structures and capital efficiency. Additionally, market interest in Bitfarms has seen an increase sustained by the introduction of novel trading instruments linked to its equity. One such offering is a newly launched product providing daily leveraged exposure to Bitfarms shares, which exemplifies growing demand for specialized investment vehicles targeting the cryptocurrency infrastructure landscape. Reflective of these developments, Bitfarms’ shares surged by 4.25% to reach $2.44 in premarket trading on Friday, as reported by Benzinga Pro data. This momentum in share price may also coincide with broader trends in related digital assets, as indicated by recent rallies in cryptocurrencies such as Bitcoin, Ethereum, XRP, and Dogecoin, which have shown gains of approximately 3%. In conclusion, Bitfarms’ strategic divestment of its Latin American asset is a calculated move designed to reallocate capital and sharpen its focus on markets with higher prospective returns in power assets supporting critical computing technologies. This repositioning may provide a foundation for future growth amid evolving demands in HPC and AI infrastructure domains.