Miner Bitfarms Raises $100M Bitcoin-Backed Loan With Galaxy Digital
Bitcoin miner Bitfarms secured a $100 million credit facility with blockchain and cryptocurrency financial services provider Galaxy Digital Holdings. The facility is backed by the company’s bitcoin holdings.
The Toronto-based miner has already drawn down $60 million at an interest rate of 10.75% per year with a six-month term and expects to draw more over the next few months, according to a statement.
“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,” CFO Jeff Lucas said.
Bitfarms intends to use the funds to reach a hashrate of 3 exahashes per second (EH/s) by March 31 and 8 EH/s by Dec. 31 of next year.
The miner said it has over 3,300 bitcoins in its treasury currently.
On Dec. 1, the company said it mined 339 bitcoins in Nov. down from 343 in October, as network difficulty increased. It reached a hashrate of 2 EH/s in mid-November.
Prior to Bitfarms, Galaxy Digital had already loaned at least $65 million to public mining companies this year, according to a report by Compass Mining.Source