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BlockFi Lending Provides $32MM Equipment Financing to Bitfarms

February 25, 2022, 07:22 AM
Filed Under: Cryptocurrency

Bitfarms, a global Bitcoin self-mining company, entered into a $32 million equipment financing agreement.

“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 Jeff Lucas, CFO of Bitfarms. “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, the Company 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%.

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.

Having demonstrated rapid growth and stellar operations, Bitfarms became the first Bitcoin mining company to complete its long form prospectus with the Ontario Securities Commission and started trading on the TSX-V in July 2019. On February 24, 2021, Bitfarms was honoured to be announced as a Rising Star by the TSX-V. On June 21, 2021, Bitfarms started trading on the Nasdaq Stock Market. On February 24, 2022, the Company was further honoured by the TSX-V as Venture 50 Winner, placing first in the Technology sector.

Bitfarms has a diversified production platform with five industrial scale facilities located in Québec, one in Washington state, and one in Paraguay. Each facility is over 99% powered with environmentally friendly hydro power and secured with long-term power contracts. Bitfarms is currently the only publicly traded pure-play mining company audited by a Big Four accounting firm.

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