Bitfarms Loses 13% of Total Mining Capacity as GMSA Cuts Power to Argentina Bitcoin Operations

Bitfarms has been forced to shut down its Argentina-based mining facility after its electricity supplier, Generación Mediterránea S.A. (GMSA), halted service. The shutdown has cut off around 13% of the company’s total Bitcoin mining capacity.

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

Following the announcement, Bitfarms’ stock (BITF) dropped by roughly 6%, reflecting investor concern over the loss. Despite the shutdown of its Argentina facility, the company continues to operate 15 mining sites across Canada, the United States, and Paraguay.

GMSA’s Financial Troubles Lead to Facility Shutdown

According to Bitfarms’ Q1 2025 Management Discussion and Analysis (MD&A) report, GMSA is undergoing financial restructuring and has appointed advisors to manage debt-related matters. Although the supplier initially assured Bitfarms there would be no disruption, it later withdrew that commitment, forcing a complete shutdown of operations at the site.

Bitfarms stated it is reviewing its options but has not provided a timeline for resuming operations. The company categorized the disruption as a “non-adjusting subsequent event,” meaning the financial impact is not included in its Q1 impairment analysis. If the outage persists, it could significantly affect Bitfarms’ future hash rate and revenue from Argentina.

Commenting on the development, Matthew Sigel, Head of Digital Assets Research at VanEck, noted that the issue appears to stem from GMSA’s internal financial troubles. He added that it does not reflect the Argentine government’s broader anti-crypto stance.

Bitfarms’ Financial and Operational Performance

In the first quarter of 2025, Bitfarms mined 693 BTC at an average direct production cost of $47,800 per coin, while total cash costs reached $72,300. The company improved operational efficiency to 19 watts per terahash, a 44% improvement over the previous year. It also increased its hash rate to 19.5 exahashes, up 200% from Q1 2024.

During the same period, Bitfarms sold 428 BTC for $37 million and a further 350 BTC in April for $30 million. As of mid-May, it holds 1,166 BTC. Despite the current disruption, Bitfarms remains focused on strengthening its mining business as a cash generator while expanding into high-performance computing (HPC) and AI infrastructure.

The post Bitfarms Loses 13% of Total Mining Capacity as GMSA Cuts Power to Argentina Bitcoin Operations appeared first on Cointab.