Home News Bitfarms receives $100M Bitcoin-backed loan with Galaxy Digital

Bitfarms receives $100M Bitcoin-backed loan with Galaxy Digital


Galaxy Digital crypto trading bank has opened a credit line for $100 million secured in Bitcoin (BTC) to the Canadian public mining company Bitfarms.

Thus, according to the press release, the company has already mastered $60 million issued for six months at a rate of 10.75% per annum. Bitfarms will receive the remainder within the next months.

“Our new $100 million BTC credit facility adds another component to our diversified financing strategy”. Said Jeff Lucas, the company’s chief financial officer.

In the third quarter, Bitfarms produced 1,050 BTC

Furthermore, Bitfarms will direct funds to bring the hashrate to 3 exahash per second (EH/s) by March 3, and to 8 EH/s by December 31, 2022. According to the company, in mid-November, the indicator was 2 EH/s.

In October, Bitfarms began construction of a data center for 55,000 miners in Argentina with a capacity of 210 megawatts (MW).

In the third quarter, the firm produced 1,050 BTC, which is 38% more than in the same period last year. By the end of September, there were 2,312 BTC in its reserves, in December – more than 3,300 BTC.

A 24 MW data center in Washington State for $26M

Later, Bitfarms announced the acquisition of a 24 MW data center in Washington State, USA, for $26 million. The firm has signed an agreement of intent to expand capacity to 99 MW.

Moreover, electricity at the facility is generated from renewable sources. Consequently, this reduced its cost by 25% compared to the site in Quebec, Canada. The average value for all mining centers of the company dropped below 4 cents per kilowatt.

Recall that Galaxy Digital crypto trading Bank announced the issue and selling of exchangeable notes worth $500 million. In addition, the maturity date is December 15, 2026. According to the press release, the placement of securities with a coupon rate of 3% will take place during a private sale; with the participation of several buyers, including companies affiliated with NZ Funds, Arca, Senator Investment Group and XN.

Previous articleCanadian regulator insists Binance is unauthorized
Next articleEminem bought Bored Ape Yacht Club NFT for $450K