Bitfarms' Big Move: Leaving Latin America for AI

Bitfarms Ltd., a prominent Bitcoin mining company, has made a strategic decision to exit Latin America. This move, while surprising to some, aligns with the challenges faced by the crypto mining industry.

The Decline of Bitcoin Mining Profitability

Bitcoin mining involves solving complex math problems to secure the network, earning newly minted Bitcoin in return. However, lower rewards and higher electricity costs have made this process less profitable.

A Strategic Shift to AI

Instead of continuing in Bitcoin mining, Bitfarms is pivoting to artificial intelligence (AI). The company has agreed to sell its 70 MW site in Paso Pe, Paraguay, for $30 million, finalizing its exit from Latin America within 60 days.

Investing in North American AI Infrastructure

The proceeds from the sale will be used to invest in AI and high-performance computing (HPC) infrastructure in North America. Bitfarms CEO Ben Gagnon stated:

"The sale of Paso Pe is the last step in our plan to leave Latin America and focus on North American power and infrastructure for AI."

A Planned Transition

This decision follows Bitfarms' earlier announcement in November 2025 to wind down its Bitcoin mining operations by 2027. The news of this strategic shift caused Bitfarms' stock to surge by over 12%, reaching $2.6399 at the time of writing.

Adapting to a Changing Market

The move from Bitcoin mining to AI is not just a change in direction but a response to market evolution. With the rise of AI, companies like Bitfarms are repurposing their infrastructure to stay relevant in a rapidly evolving tech landscape.