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Bitfarms Secures $100MM Bitcoin-backed Credit Facility from Galaxy Digital

January 03, 2022, 08:00 AM
Filed Under: Cryptocurrency

Bitfarms Ltd., a global Bitcoin self-mining company, secured a $100 million credit facility with Galaxy Digital LLC backed by Bitcoin (BTC).

“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,” said Jeff Lucas, CFO of Bitfarms. “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.

$100 Million Bitcoin-backed Credit Facility

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 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.

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