Bitfarms Announces Equipment Financing Agreement Worth $32 Million
Bitfarms Ltd, a global Bitcoin self-mining company, entered into a $32 million equipment financing agreement.
Bitfarms’s equipment financing deal provides another source of non-dilutive capital, allowing the firm to finance equipment from current mining operations in order to invest growth capital in miner acquisitions and the company’s new farms under construction, according to 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 arrangement, the company engaged into an equipment loan for the recent acquisition of 6,100 Bitmain S19j Pros for a total of US$32 million, which is secured by the Bitmain S19j Pros. The loan has a two-year duration and a 14.5 percent interest rate.
BlockFi Lending LLC supplied the funding. “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.
Bitfarms, which was founded in 2017, is a global Bitcoin self-mining company that operates vertically 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.
The company offers a diverse production platform that includes five industrial size facilities in Québec, one in Washington state, and one in Paraguay. Each plant is fueled by ecologically beneficial hydro electricity and is protected by long-term power contracts. Bitfarms is the first publicly listed pure-play mining company that has been audited by a Big Four accounting firm.
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