Nasdaq-listed Bitcoin mining company Bitfarms (ticker: BITF) is completely exiting its South American mining operations. The company plans to sell its large mining facility in Paraguay and pivot to become an energy infrastructure company focused on artificial intelligence (AI) and high-performance computing (HPC).
Bitfarms announced the sale of its 70-megawatt (MW) Bitcoin mining facility in Paso Pe, Paraguay, to the Simpatia Power Fund for $30 million. The transaction marks the end of Bitfarms' entire mining operations in Latin America.
While this mining site has served as a key base in South America due to its low electricity costs, Bitfarms has recently significantly revised its business strategy and taken steps to shift away from a mining-centric structure. This decision is interpreted as a move to reduce Bitcoin mining industry volatility and energy cost risks, while also responding to growing demand for AI and HPC.
Bitfarms plans to reinvest the funds raised from this sale into building AI- and high-performance computing-based data centers and energy infrastructure. This strategy aims to restructure its business portfolio into an "AI-friendly energy platform" that combines power infrastructure and data centers.
Market analysts believe this decision is aligned with structural changes across the global Bitcoin mining industry. Mining companies are accelerating their shift from a simple hash rate competition to expanding or shifting their business to AI data centers and energy infrastructure.
Bitfarms' withdrawal from South America is seen as a symbolic example of how the mining industry struggles to sustain growth with a single business model. The market is focusing on how Bitcoin mining companies will adapt to the "AI era."
