Bitfarms, one of many largest publicly traded Bitcoin mining firms, has suspended all operations at its mining facility in Argentina.
The shutdown follows a discover from its electrical energy provider, Generación Mediterránea S.A. (GMSA), which knowledgeable the corporate that it could halt energy indefinitely, efficient Could 12. The affected Río Cuarto web site contributes roughly 13% of Bitfarms’ whole mining capability.
As disclosed in its Q1 2025 MD&A report, GMSA is present process a monetary restructuring course of and has appointed advisors to handle its debt negotiations. Initially, the provider had assured Bitfarms it may proceed operations on the web site.
Nonetheless, the sudden change in circumstances pressured a whole energy shutdown, prompting a full pause within the firm’s crypto mining exercise within the area.
No Broader Crypto Crackdown in Argentina, Says VanEck Analyst
Matthew Sigel, Head of Digital Belongings Analysis at VanEck, highlighted the event on X. He said that the difficulty seems to be remoted to GMSA’s monetary difficulties and doesn’t point out a broader anti-crypto stance by the Argentine authorities.
Nonetheless, the information triggered concern amongst buyers, sending Bitfarms (BITF) inventory down roughly 6%. The corporate famous that it’s evaluating its choices and searching for a decision. Nonetheless, it has not offered a timeline for a possible resumption of operations.
Argentina electrical energy provider GMSA halts energy to Bitfarms $BITF Bitcoin mining operations, shutting down all mining in ARG, ~13% of whole BITF capability.
Appears particular to the GMSA funds and never a results of any broader BTC coverage in Argentina.
Nonetheless, destructive. BITF -6%. pic.twitter.com/Ox650SId2U— matthew sigel, recovering CFA (@matthew_sigel) Could 14, 2025
Implications Not But Mirrored in Financials
Notably, Bitfarms categorized the ability shutdown as a “non-adjusting subsequent occasion,” that means its monetary impression shouldn’t be but factored into the impairment evaluation for Q1 2025. If the electrical energy difficulty persists, it may considerably have an effect on the corporate’s hash charge and future earnings from its Argentine operations.
Bitfarms’ Q1 Bitcoin Mining Efficiency
Bitfarms operates 15 energetic knowledge facilities throughout international locations, together with Canada, america, and Paraguay. In Q1 2025, the agency mined 693 BTC at a mean direct manufacturing value of $47,800 per Bitcoin, with a complete money value of $72,300.
The corporate improved its operational effectivity, reaching 19 watts per terahash, a 44% year-over-year enchancment, and elevated its hash charge to 19.5 exahashes, up 200% from Q1 2024.
Bitfarms additionally bought 428 BTC through the quarter for $37 million and an extra 350 BTC in April for $30 million. As of mid-Could, it holds 1,166 BTC.
The corporate continues to leverage its mining enterprise as a steady, cash-generating base whereas advancing its strategic shift towards high-performance computing (HPC) and AI infrastructure.
