Bitfarms, one of the largest publicly traded Bitcoin mining companies, has suspended all operations at its mining facility in Argentina.
The shutdown follows a notice from its electricity supplier, Generación Mediterránea S.A. (GMSA), which informed the company that it would halt power indefinitely, effective May 12. The affected Río Cuarto site contributes approximately 13% of Bitfarms’ total mining capacity.
As disclosed in its Q1 2025 MD&A report, GMSA is undergoing a financial restructuring process and has appointed advisors to manage its debt negotiations. Initially, the supplier had assured Bitfarms it could continue operations at the site.
However, the sudden change in circumstances forced a complete power shutdown, prompting a full pause in the company’s crypto mining activity in the region.
No Broader Crypto Crackdown in Argentina, Says VanEck Analyst
Matthew Sigel, Head of Digital Assets Research at VanEck, highlighted the development on X. He stated that the issue appears to be isolated to GMSA’s financial difficulties and does not indicate a broader anti-crypto stance by the Argentine government.
Still, the news triggered concern among investors, sending Bitfarms (BITF) stock down approximately 6%. The company noted that it is evaluating its options and seeking a resolution. However, it has not provided a timeline for a potential resumption of operations.
Argentina electricity supplier GMSA halts power to Bitfarms $BITF Bitcoin mining operations, shutting down all mining in ARG, ~13% of total BITF capacity.
Looks specific to the GMSA finances and not a result of any broader BTC policy in Argentina.
Still, negative. BITF -6%. pic.twitter.com/Ox650SId2U— matthew sigel, recovering CFA (@matthew_sigel) May 14, 2025
Implications Not Yet Reflected in Financials
Notably, Bitfarms categorized the power shutdown as a “non-adjusting subsequent event,” meaning its financial impact is not yet factored into the impairment analysis for Q1 2025. If the electricity issue persists, it could significantly affect the company’s hash rate and future earnings from its Argentine operations.
Bitfarms’ Q1 Bitcoin Mining Performance
Bitfarms operates 15 active data centers across countries, including Canada, the United States, and Paraguay. In Q1 2025, the firm 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 its operational efficiency, achieving 19 watts per terahash, a 44% year-over-year improvement, and increased its hash rate to 19.5 exahashes, up 200% from Q1 2024.
Bitfarms also sold 428 BTC during the quarter for $37 million and an additional 350 BTC in April for $30 million. As of mid-May, it holds 1,166 BTC.
The company continues to leverage its mining business as a stable, cash-generating base while advancing its strategic shift toward high-performance computing (HPC) and AI infrastructure.
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