Bitfarms Announces Lease Financing for 1,000 New Generation Bitfarms Announces Lease Financing for 1,000 New Generation Miners Adding 82 Petahash of Computing Power, Agreement to Amend
2020-08-20 11:00:00.158 GMT
Bitfarms Announces Lease Financing for 1,000 New Generation Miners Adding 82
Petahash of Computing Power, Agreement to Amend Existing Loans and Provides
Notice of Release of Second Quarter 2020 Financial Results
Business Wire
TORONTO & BROSSARD, Qubec -- August 20, 2020
Bitfarms Ltd. (“Bitfarms” or the “Company”) (TSXV: BITF) is pleased to
announce that it has entered into an equipment lease with BlockFills for 1,000
WhatsMiner M31S+ miners to be delivered and installed in approximately two
weeks. BlockFills is the first electronic, off exchange, digital liquidity
provider, operating an electronic communication network model. Bitfarms is
also pleased to announce that is has reached an agreement, in principal, with
Dominion Capital LLC (“Dominion”) to amend certain terms and conditions of two
of its US$5,000,000 loan tranches. The maturity date of the Company’s
US$5,000,000 loan tranche originally due April 17, 2021 will be extended to
November 1, 2021. In addition, the Company’s loan tranche due June 20, 2021
will add a conversion feature that will allow Dominion to convert debt to
equity at a rate of US$0.59 per common share, a premium of approximately 70%
to the current market price of the Company’s shares. The aforementioned
amendments are subject to TSXV approval and finalization of legal
documentation.
Lease of 1,000 New Generation Miners
The Company has entered into an equipment lease with BlockFills for 1,000
WhatsMiner M31S+ miners for a term of 24 months and carries an implicit annual
interest rate of 12%. The lease also includes a bargain purchase option which
when exercised will transfer ownership of the equipment to Bitfarms at end of
the lease term for a nominal amount. Bitfarms will make weekly lease payments
that will fully retire the capitalized cost of the miners over the term of the
lease.
Each WhatsMiner M31S+ miner produces an average of 82 terahash per second of
computing power while consuming approximately 3.44 kWh of energy, or 42 joules
per terahash. The mining hardware is expected to be fully operational within
two weeks and will add approximately 82 petahash per second to the Company's
installed computing power as well as consuming approximately 3.4 megawatts
("MW") of electricity. The new equipment will improve the Company’s computing
efficiency to approximately 17 PH per MW further extending Bitfarms’ position
as the most efficient publicly traded cryptocurrency miner in Canada in terms
of computing power relative to electricity consumption.
Restructuring of Existing Notes
The Company has reached an agreement with Dominion to amend the second loan
tranche of US$5,000,000 to extend the maturity date from the original due date
of April 17, 2021 to November 1, 2021. The interest rate for the period from
April 17 to November 1, 2021 will remain unchanged at 10% per annum. As
consideration, Bitfarms will issue 1 million restricted shares to Dominion.
The Company has also reached agreement with Dominion to amend its third loan
tranche of US$5,000,000 due June 20, 2021 to make it convertible, at the
option of Dominion, into common shares of Bitfarms at a fixed conversion of
US$0.59 per share, a premium of approximately 70% to the current market price
of the Company’s shares.
“The restructuring of our second and third loan tranches with Dominion will
provide valuable flexibility and additional time to build cash from operations
to improve Bitfarms’ ability to meet its future commitments and obligations as
it continues to grow and scale its business. Dominion have been great partners
and supporters of Bitfarms as we continue to grow,” commented John Rim, COO
and CFO of Bitfarms.
“We are also pleased to partner with BlockFills to lease 1,000 new generation
miners, especially during this period when available mining equipment
inventory is low. Bitfarms is working with BlockFills to enter into further
lease financing over the next few weeks that will allow the Company to add
even more operational capacity. Given the recent rise in Bitcoin prices,
Bitfarms is well-positioned as mining economics continue to improve after the
Bitcoin Halving this past May and we are excited to be able to continue with
the execution of our growth strategy,” said Emi Grodzki, Interim CEO of
Bitfarms.
Release of Second Quarter 2020 Financial Results
Bitfarms also announces it will release its second quarter 2020 results on
Friday, August 28, 2020 prior to market open. The Company’s senior management
will be hosting a webcast presentation at 10:00 AM Eastern Time on August 28,
2020 to discuss Bitfarms’ financial and operating results. The webcast
presentation and registration link will be available on the Company’s website
at
www.bitfarms.com.
About Bitfarms Ltd.