Bitfarms Secures $300 Million Debt Facility with Macquarie Group
Bitfarms (BITF) has announced a significant milestone in its financing efforts by entering into an initial agreement for a private debt facility that could reach up to $300 million with Macquarie Equipment Capital, Inc., a division of the renowned Macquarie Group’s Commodities and Global Markets. This funding is aimed at facilitating the initial development of Bitfarms’ state-of-the-art high-performance computing (HPC) data center located at Panther Creek, Pennsylvania, which is projected to achieve a remarkable capacity of up to 500 MW.
As part of this agreement, an initial tranche of $50 million has already been drawn at the parent company level. This capital will be utilized to cover essential development soft costs and general corporate expenses. The remaining $250 million is contingent upon the successful completion of key project milestones, ensuring that the facility becomes fully secured at the project level once these milestones are met.
Each tranche of the debt facility has a duration of two years and carries an annual interest rate of 8%. Notably, the initial tranche will feature interest paid in kind for the first three months, providing some flexibility during the early stages of the project. Furthermore, the financing arrangement includes equity-linked warrants for Macquarie, which are tied to future draws and priced at a 25% premium to recent trading averages. To maintain financial stability, Bitfarms is required to uphold minimum liquidity levels and adhere to several customary covenants.
CEO Ben Gagnon emphasized the strategic significance of this partnership, highlighting Panther Creek’s advantageous location in proximity to major metropolitan areas, as well as its multiple power sources that enable efficient, redundant, and scalable operations. This development marks a pivotal step in Bitfarms’ ongoing commitment to expanding its capabilities and enhancing its competitive edge in the cryptocurrency mining sector.
In early U.S. market trading, Bitfarms shares have seen a modest increase of 1.44%, reaching 81 cents.
