Bitfarms Ltd. (“ Bitfarms ”, or the “ Company ”) ( TSXV:BITF ) (U.S.:OTC:BFARF), one of the largest and most productive publicly listed bitcoin mining operations in the world, is pleased to announce that it has closed its previously announced private placement of equity securities (the “ Offering ”). The Offering was for gross proceeds of approximately CAD$20 million and consisted of the sale of 8,888,889 common shares, along with warrants to purchase an aggregate of up to 8,888,889 common shares, at a purchase price of CAD$2.25 per common share and associated warrant. The warrants have an exercise price of CAD$2.75 per common share and exercise period of three years (through January 8, 2024). The funds were raised via a fully subscribed private placement of Units among U.S. institutional investors.
H.C. Wainwright & Co. acted as the exclusive placement agent for the Offering.
The net proceeds of the Offering will be used principally to acquire additional miners, expand infrastructure, and improve its working capital position.
H.C. Wainwright & Co. received (i) a cash commission equal to 8.0% of the gross proceeds of the Offering and (ii) 711,111 non-transferable broker warrants (the “ Broker Warrants ”), with each Broker Warrant exercisable for one common share of the Company at a price of CAD$2.81 at any time on or before January 8, 2024.