Adds Another Source of Non-dilutive Capital
Bitfarms Ltd., 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.”
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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%.
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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.
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