Bitfarms (BITF) has secured a $100 million credit facility with Galaxy Digital LLC backed by Bitcoin (BTC).
Jeff Lucas, CFO of Bitfarms commented on the news.
“Bitcoin mining is a highly capital-intensive industry. We seek to strike a balance between maximizing financing flexibility and minimizing our overall cost of capital. Our new $100 million BTC credit facility adds another component to our diversified financing strategy and contributes significant non-dilutive capital to fund our global growth initiatives, which include four farms with 298 Megawatts mining capacity under construction.”
“With over 3,300 BTC presently held in treasury, we are leveraging the value of our BTC holdings while increasing working capital flexibility. We plan to utilize these funds for general corporate purposes in support of our goals of achieving hash rates of 3 Exahash per second (EH/s) by March 31, 2022 and 8 EH/s by December 31, 2022, as well as future miner purchases,” added Lucas.
On December 30, 2021, Bitfarms secured a $100 million BTC-backed credit facility with Galaxy Digital LLC, an affiliate of Galaxy Digital Holdings Ltd, a provider of blockchain and cryptocurrency financial services for institutions. This revolving, multi-draw credit facility automatically renews annually.
Bitfarms has made an initial $60 million draw with a six-month term at an interest rate of 10.75 per cent per annum. Anticipated additional draws over the next few months, which would bring the total borrowings to $100 million would be expected to bear the same interest rate and to be due on the same date as the initial draw.
Bitfarms is a global bitcoin mining company, running integrated mining operations with onsite technical repair, proprietary data analytics and company-owned electrical engineering and installation services to deliver high operational performance and uptime.
Bitfarms has five industrial-scale facilities located in Québec and one in Washington state. Each facility is powered with environmentally-friendly hydropower and secured with long-term power contracts.
Bitfarms Ltd. (BITF) opened trading at C$6.52 per share.