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Aoyon Ashraf
Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets
Crypto miner Bitfarms (BITF) raised $34 million with the sale of 1,500 bitcoin (BTC), applying those funds to trim a credit-backed facility from Galaxy Digital (GLXY.TO) to $66 million from $100 million. Alongside, the company entered a new $37 million equipment financing deal with NYDIG.
- “In addition to lowering our interest expense, this $34 million reduction in borrowing gives us the ability to utilize more of our BTC holdings strategy as it frees up BTC that would otherwise be used to collateralize this credit facility,” said Bitfarms CFO Jeff Lucas in a press release.
- The Galaxy facility was set to expire on June 30 and Bitfarms is now negotiating with Mike Novogratz’s crypto merchant bank to renew the line, according to the statement. The sale of 1,500 bitcoin to raise $34 million with which to partially pay down the loan implies an average price of about $22,000 per coin.
- Bitfarms also agreed to an equipment financing deal with NYDIG for $37 million at a 12% interest rate. This loan is collateralized by the mining rigs at the company’s Leger and Bunker facilities.
- Bitfarms’ moves come as crypto miners who levered up to fund speedy growth are feeling the squeeze of the crash in crypto markets.
- The company is also in talks with NYDIG for additional funding which – if eventually agreed upon – might come in July and October as construction continues at the miner’s Bunker facility.
- On February 25, Bitfarms closed a $32 million equipment financing loan with another lending firm, BlockFi, that carried a two-year term and interest rate of 14.5%.
- The shares of the miner are up about 4% on Friday alongside a 1% gain in bitcoin. The stock’s lower by nearly 75% year-to-date.
