Bitfarms, a global Bitcoin mining company, secured a $100 million credit facility with Galaxy Digital backed by Bitcoin.
“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,” Jeff Lucas, CFO of Bitfarms, said. “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 three Exahash per second (EH/s) by March 31, 2022, and eight EH/s by Dec. 31, 2022, as well as future miner purchases.”
The facility from Galaxy Digital is a revolving, multi-draw credit facility that automatically renews annually. Bitfarms has made an initial $60 million draw with a six-month term at an interest rate of 10.75% per annum. Anticipated additional draws over the next few months, which would bring the total borrowings to $100 million, are subject to customary TSX Venture Exchange approval and would be expected to bear the same interest rate and to be due on the same date as the initial draw.
