Bitfarms Halts Bitcoin Mining in Argentina After Power Outage, 13% of Capacity Shut Down

Bitfarms, one of the leading publicly traded Bitcoin mining companies, has suspended all operations at its mining facility in Argentina.

The shutdown was prompted by a notice from energy company Generación Mediterránea SA (GMSA), which informed Bitfarms that it would be cutting off power supplies for an indefinite period, effective May 12. The Río Cuarto site accounts for approximately 13% of Bitfarms' total mining capacity .

As stated in the Q1 2025 MD&A, GMSA is undergoing a financial reorganization and has engaged advisors to negotiate debts. The vendor initially assured Bitfarms that it would be able to continue operating the platform.

However, an unexpected change in the situation resulted in a complete power outage, which caused the complete cessation of the cryptocurrency mining company's operations in the region.

VanEck Analyst Says Argentina Doesn't Expect Major Crypto Crackdown

Matthew Siegel, head of digital asset research at VanEck, commented on the situation regarding X. He noted that the issue appears to be related to GMSA's financial difficulties and does not indicate a broader anti-cryptocurrency policy by the Argentine government.

However, the news has caused concern among investors, causing Bitfarms (BITF) shares to fall by around 6%. The company noted that it is assessing its options and looking for ways to address the situation. However, no timeframe was provided for a potential resumption of operations.

Argentina's electricity provider GMSA is cutting off power to Bitfarms' $BITF bitcoin mining operations, halting all mining at ARG, which represents about 13% of BITF's total capacity.
This appears to be a GMSA financial issue rather than a result of any broader BTC policy in Argentina.
Still negative. BITF -6%. pic.twitter.com/Ox650SId2U

— Matthew Siegel, CFA Reinstatement (@matthew_sigel) May 14, 2025

The impact has not yet been reflected in the financial statements.

It is important to note that Bitfarms has classified the power outage as a “non-adjusting subsequent event,” meaning that its financial impact has not yet been factored into its impairment analysis for Q1 2025. If the power outage continues, it could have a significant impact on the company’s hashrate and future revenue from its Argentina operations.

Bitfarms Q1 Bitcoin Mining Results

Bitfarms operates 15 active data centers in various countries, including Canada, the United States, and Paraguay. In Q1 2025, the company mined 693 BTC at an average mining cost of $47,800 per bitcoin, with a total cost of $72,300.

The company improved its operational efficiency, reaching 19W per terahash, a 44% improvement year-over-year, and increased its hashrate to 19.5 exahash, a 200% increase from Q1 2024.

Bitfarms also sold 428 BTC during the quarter for $37 million and another 350 BTC in April for $30 million. As of mid-May, the company holds 1,166 BTC.

The company continues to leverage its mining business as a stable, cash-generating base while making a strategic shift into high-performance computing (HPC) and AI infrastructure.

Source: cryptonews.net