Bitfarms, a Bitcoin Self-Mining Company, Enters Into $32M Equipment Financing Deal

Bitfarms (NASDAQ: BITF, TSXV: BITF), a global Bitcoin self-mining company, has entered into a $32 million equipment financing agreement, the company announced this week.

“This equipment financing agreement provides another source of non-dilutive capital, enabling us to finance equipment from our established mining operations so that we can invest growth capital into miner purchases and our new farms under construction,” said the company’s chief financial officer Jeff Lucas. “With bitcoin (BTC) miner purchases making up the majority of our capital needs, this $32 million equipment financing frees up working capital and supports our flexible and non-recourse financing options, which also include our recently announced $100 million BTC collateralized loan facility.”

Under the terms of the financing agreement, Bitfarms entered into an equipment loan for the recent purchase of, and is secured by, 6,100 Bitmain S19j Pros for a total of US$32 million. The loan carries a two-year term and an interest rate of 14.5 per cent. The financing was provided by BlockFi Lending LLC.

“We are pleased to partner with Bitfarms on this transaction. Our goal is to support our client’s working capital needs and provide them with financial leverage for future growth,” said Patrick Guerriero, director of miner finance at BlockFi.

Founded in 2017, Bitfarms runs vertically integrated mining operations with on-site technical repair, proprietary data analytics and company-owned electrical engineering and installation services to deliver high operational performance and uptime. It began trading on the TSX-V in July 2019 and on Nasdaq on June 21, 2021.

On Feb. 24, 2021, Bitfarms was announced as a Rising Star by the TSX-V. Earlier this week, they were named by the TSX-V as Venture 50 Winner, placing first in the Technology sector. They have five industrial-scale facilities located in Québec, one in Washington state, and one in Paraguay. Each facility is almost completely powered with hydro power and secured with long-term power contracts.



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