Key Highlights:
- A two-year funding facility with an annual interest rate of 8%, transitioning from parent-level to project-level financing upon completing specific milestones.
- Funds will expedite Bitfarms’ transition to high-performance computing (HPC), leveraging strong infrastructure and proximity to major U.S. metropolitan areas.
- The deal includes equity warrants for Macquarie to prevent equity dilution and maintain capital flexibility.
Bitfarms (BITF) has announced an agreement for a private debt facility worth up to $300 million with Macquarie Equipment Capital, Inc., a division of Macquarie Group’s Commodities and Global Markets. This financing will fund the initial development of Bitfarms’ HPC data center at Panther Creek, Pennsylvania, aimed to achieve up to 500 MW capacity.
The initial $50 million tranche has already been allocated to cover development soft costs and corporate expenses, while the remaining $250 million is subject to achieving key project milestones. Each tranche of funds holds a two-year term at 8% annual interest, with the initial funds featuring interest payable in kind for the first three months.
The funding agreement includes equity-linked warrants for Macquarie, linked to subsequent draws priced at a 25% premium to trading averages. Bitfarms will adhere to liquidity requirements and several customary covenants.
CEO Ben Gagnon emphasized the strategic advantage of Panther Creek’s close distance to major metropolitan areas and its multiple power sources for efficient, scalable operations. Notably, Bitfarms shares increased by 1.44% to $0.81 in initial U.S. market trading.
