WEBULL

Bitfarms (TSX:BITF) Is Up 5.6% After Selling Paraguay Site To Fund North American AI Pivot

Simply Wall St · 01/05 18:21
  • Bitfarms has entered into a definitive agreement to sell its 70 MW Paso Pe Bitcoin mining site in Paraguay for up to US$30 million, receiving US$9 million at closing and potentially US$21 million over the following 10 months, completing its exit from Latin America as of early 2026.
  • This divestment frees up capital and shifts Bitfarms’ energy portfolio to be entirely North American, underpinning its move toward high-performance computing and AI-focused infrastructure projects.
  • We’ll now examine how Bitfarms’ full exit from Latin America and redeployment into North American HPC and AI shapes its investment narrative.

AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Bitfarms Investment Narrative Recap

To own Bitfarms today, you need to believe in its ability to shift from a volatile Bitcoin mining model to a North American, HPC and AI power and data center business, while managing capital intensity and regulatory uncertainty. The Paso Pe sale strengthens liquidity and simplifies the footprint, but it does not remove the key short term catalyst, which is progress on securing and building out profitable HPC and AI capacity, nor the biggest current risk around funding and executing that buildout.

The most relevant recent announcement here is Bitfarms’ plan to reinvest the up to US$30,000,000 from the Paraguay exit into North American HPC and AI infrastructure, including expansion at sites like Panther Creek and Scrubgrass. This links directly to the company’s main catalyst, which is converting existing power access into contracted, higher value compute revenues, while testing whether its newer leadership team can deliver complex data center projects on time and on budget.

Yet investors should also be aware of how heavily this transformation still relies on access to sizable, timely project financing...

Read the full narrative on Bitfarms (it's free!)

Bitfarms' narrative projects $504.8 million revenue and $58.8 million earnings by 2028.

Uncover how Bitfarms' forecasts yield a CA$8.48 fair value, a 137% upside to its current price.

Exploring Other Perspectives

TSX:BITF 1-Year Stock Price Chart
TSX:BITF 1-Year Stock Price Chart

Twelve fair value estimates from the Simply Wall St Community span roughly US$2.56 to US$3,794.88 per share, showing just how far apart individual views can be. Against that backdrop, Bitfarms’ planned reinvestment of Latin American sale proceeds into North American HPC and AI projects puts execution and financing risk at the center of the company’s future performance, so it is worth weighing several of these perspectives before forming a view.

Explore 12 other fair value estimates on Bitfarms - why the stock might be worth 28% less than the current price!

Build Your Own Bitfarms Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Looking For Alternative Opportunities?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.