Miner Bitfarms Raises $100M Bitcoin-Backed Loan From Galaxy Digital

Bitcoin miner Bitfarms secured a $100 million credit facility from 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,” Chief Financial Officer Jeffrey 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. Exahashes are a measure of the computational power of the specialized computers, called “miners,” that mint bitcoin and process bitcoin transactions.
• The miner said it has more than 3,300 bitcoins in its treasury.
• On Dec. 1, the company said it mined 339 bitcoins in November, down from 343 in October, as network difficulty increased. It reached a hashrate of 2 EH/s in mid-November.
• Before its deal with Bitfarms, Galaxy Digital had already loaned at least $65 million to public mining companies this year, according to a report by Compass Mining.