Bitfarms, one of the largest publicly available Bitcoin mining companies, has halted all operations at its mining facilities in Argentina.
shutdown Follows notices from our electricity supplier Generación Mediterránea SA (GMSA). This notified the company on May 12th that it would shut down power indefinitely.
As revealed in the MD&A report for the first quarter 2025, GMSA is undergoing a fiscal restructuring process and has appointed an advisor to manage debt negotiations. Initially, the supplier ensured BitFarm could continue operating on the site.
However, a sudden change in the situation forced a full power shutdown and prompted a complete suspension of the company’s crypto mining activities in the region.
In Argentina, there is no broader crypto crackdown, says Vanek analysts
Matthew Sigel, head of digital assets research at Vaneck, highlighted the development of X. He said the issue appears to be isolated from the GMSA’s financial difficulties and does not show a wider anti-cryptostance by the Argentine government.
Still, the news sparked concern among investors, bringing down BitFarms (BITF) stocks by about 6%. The company noted that it evaluates the options and seeks a resolution. However, no timeline is provided for potential reopening of operations.
The Argentina Electricity Supplier GMSA stops power to the BitFarms $BITF BITCOIN mining operation and shuts down all mining in the ARG.
It appears to be specific to GMSA’s finances rather than the result of Argentina’s broader BTC policy.
Still, it’s negative. BITF -6%. pic.twitter.com/ox650sid2u– Matthew Sigel, Recovering CFA (@matthew_sigel) May 14, 2025
Meaning not yet reflected in finance
In particular, BitFarms classified power shutdowns as “untuned events.” That is, its financial impact has not yet been taken into account in the first quarter of 2025 impairment analysis.
BitFarms’ Q1 Bitcoin Mining Performance
Bitfarms operates 15 active data centers in countries including Canada, the US and Paraguay. In the first quarter of 2025, the company mined 693 BTC at an average direct production cost of $47,800 per Bitcoin, with a total cash cost of $72,300.
The company improved operational efficiency, achieving a 44% improvement over the previous year, a 200% increase in hash rates from the first quarter of 2024.
BitFarms also sold 428 BTC for $37 million during the quarter, and an additional 350 BTC for $30 million in April. As of mid-May, it has held 1,166 BTC.
The company continues to utilize its mining business as a stable cash generation base, moving forward with its strategic shift towards high-performance computing (HPC) and AI infrastructure.
