Bitfarms (BITF) announces a C$40M private placement with U.S. institutional investors.
Bitfarms, a Canadian publicly listed bitcoin mining operation, has entered into subscription agreements with certain institutional investors for gross proceeds of approximately CAD$40.0 million in a private placement in the United States.
The placement is comprised of 11,560,695 common shares along with warrants to purchase an aggregate of up to 11,560,695 common shares at a purchase price of CAD$3.46 per common share and associated warrant.
The warrants have an exercise price of USD$3.01 per common share and an exercise period of three and one-half years.
The net proceeds of the private placement will be used by the company principally to acquire additional miners, expand infrastructure, and improve its working capital position.
The private placement is expected to close on or about February 10, 2021, subject to satisfaction of customary closing conditions and approval of the TSX Venture Exchange.
“We are pleased to announce our third financing, having just closed two financings in January of CAD$20.0 million each (see press releases of January 7 and January 13, 2021). This additional financing will allow us to further grow our miner count and expand infrastructure. We are very pleased to continue to expand our institutional presence in the United States”, said Emiliano Grodzki, CEO of Bitfarms.
Bitfarms is one of the largest public bitcoin mining operations in the world and is listed on the TSX-V. Founded in 2017 it has five industrial-scale facilities across Quebec, Canada and is responsible for infrastructure activities of approximately 1% of the entire Bitcoin mining industry and daily Bitcoin mined.
Bitfarms (BITF) opened trading today at C$3.84 per share.