Bitfarms obtains C$100 million credit facility with Galaxy Digital

By Rebecca Melvin

Concord, N.H., Dec. 31 – Bitfarms Ltd. has secured a C$100 million credit facility with Galaxy Digital LLC, according to a company release on Friday.

The revolving multi-draw credit facility is backed by the company’s bitcoin. The initial C$60 million draw with a six-month term was made at an interest rate of 10.75% per year. Additional draws are expected over the next few months at the same interest rate.

The facility is subject to customary TSX Venture Exchange approval.

“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,” Bitfarms chief financial officer Jeff Lucas said in the release.

Proceeds are earmarked for general corporate purposes in support of the company’s goals of achieving hash rates of 3 Exahash per second by March 31, 2022 and 8 EH/s by Dec. 31, 2022 as well as future miner purchases.

Galaxy Digital LLC is an affiliate of Galaxy Digital Holdings Ltd, a provider of blockchain and cryptocurrency financial services for institutions.

Toronto-based Bitfarms is a self-mining company with five industrial scale facilities located in Quebec and one in Washington state.

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