Bitfarms announced that it has signed a definitive share purchase agreement to sell its 70 MW Paso Pe Bitcoin mining site in Paraguay to Sympatheia Power Fund, a crypto infrastructure fund managed by Hawksburn Capital, for up to $30 million. The transaction formalizes the company’s withdrawal from Latin America and redirects capital toward North American high-performance computing (HPC) and AI energy infrastructure.
Under the agreement, the deal is expected to close within 60 days; Bitfarms will receive $9 million in cash at closing (including a $1 million non-refundable deposit already paid) and up to $21 million over the following ten months subject to payment milestones. The payment structure concentrates early liquidity while leaving a meaningful portion of proceeds dependent on post-closing execution.
Deal structure and consideration mechanics
The buyer will acquire the shares of the single-purpose subsidiary that holds the operating assets of the Paso Pe site. Closing is subject to customary conditions and, per the release, is expected to occur within 60 days of the announcement. By tying a material portion of the consideration to milestones, the agreement shifts part of the economic certainty from signing to delivery.
The structure breaks down into an initial $9 million at closing, followed by contingent payments of up to $21 million over ten months. This cadence effectively staggers cash receipts and makes milestone performance central to the deal’s full value realization.
The transaction details also point to a broader divestment path, including a prior Latin America exit referenced as the 200 MW Yguazú site sold in 2024 to HIVE. Taken together, the disclosures position Paso Pe as another step in simplifying the operating footprint around a North America-only strategy.
Strategic pivot to North American HPC and AI
Bitfarms framed the sale as a rebalancing of its energy asset footprint to 100% North American operations and a capital redeployment to HPC/AI energy infrastructure. Management projected that the redeployment will accelerate two to three years of anticipated free cash flows by prioritizing higher-margin, more predictable compute workloads over Bitcoin mining’s volatility. The company is presenting the shift as a move from cyclicality toward a steadier infrastructure-like cash-flow profile.
Alongside the strategic narrative, the company reported 341 MW of energized capacity, 430 MW under active U.S. development, and a 2.1 GW multi-year pipeline with roughly 90% concentrated in the U.S. These figures underscore that the pivot is being positioned as a scaled buildout rather than a limited pilot initiative.
The market response was immediate: Bitfarms’ stock climbed by more than 11% on the announcement, reflecting investor support for the pivot toward AI and data-center economics. At the same time, observers flagged execution and financial risks, noting that converting mining assets into HPC/AI data centers is capital intensive and operationally complex, with competition from entrenched hyperscalers and GPU providers increasing pressure. The reaction blends enthusiasm for the thesis with clear concern about the complexity of delivering it.
The release also noted prior concerns highlighted in financial analysis, including a high Beneish M-Score and elevated stock volatility (beta ~5.66), which may amplify investor sensitivity to missed milestones or financing gaps. These risk markers frame the pivot as one where sentiment could swing sharply if execution deviates from plan.
The company intends to complete a planned conversion of an 18 MW Washington state facility to support HPC/AI workloads by December 2026 and has set an objective to wind down Bitcoin mining operations by 2027. Those timelines make near-term engineering and commercialization milestones a decisive test of whether the strategy can translate into durable results.
Investors and counterparties will now watch the transaction close and the scheduled milestone payments, as well as the company’s execution on the Washington-state conversion and broader U.S. development pipeline. Timely closing and operational delivery are positioned as the clearest signals that energy assets can be converted into stable HPC/AI cash flows.
