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 temporarily suspended all operations at its Argentina facility.

The shutdown followed a notice from electricity company Generación Mediterránea SA (GMSA), which announced an indefinite power outage starting May 12. The affected Río Cuarto site represents approximately 13% of Bitfarms' total mining capacity .

As indicated in the MD&A report for the first quarter of 2025, GMSA is in the process of financial reorganization and has engaged advisers to negotiate debts. Initially, the supplier assured Bitfarms that it would be able to continue operating the platform.

However, an unexpected change in circumstances resulted in a complete power outage, causing the company's cryptocurrency mining operations in the region to completely cease.

VanEck Analyst Says Argentina Will Not See Massive Crypto Crackdown

Matthew Siegel, head of digital assets 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-crypto stance by the Argentine government.

However, the news caused concern among investors, causing Bitfarms (BITF) shares to fall by about 6%. The company said it was evaluating its options and looking for a solution. However, no timeframe was provided for a possible 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 consequences are not yet reflected in the financial indicators.

It should be noted that Bitfarms characterized the power outage as a “non-adjusting subsequent event,” meaning 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 direct mining cost of $47,800 per bitcoin, with a total cost of $72,300.

The company improved its operational efficiency, reaching 19W per terahash, up 44% year-on-year, and increased its hashrate to 19.5 exahash, up 200% 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 moving forward in its strategic focus on high-performance computing (HPC) and AI infrastructure.

Source: cryptonews.net