What to know:
- Ah, the two-year facility, a veritable Pandora’s box of 8% annual interest, transitioning from the lofty heights of parent-level financing to the gritty reality of project-level financing upon the completion of certain milestones—if one can call them that.
- These funds, dear reader, will hasten Bitfarms’ grandiose leap into the realm of high-performance computing, a venture supported by the ironclad infrastructure and the tantalizing proximity to the bustling metropolises of the United States. Who could resist such temptation?
- And let us not forget our friend Macquarie, who, in this sordid affair, receives equity warrants as part of the deal; a financing structure that artfully avoids the dreaded equity dilution while ensuring a flexibility that would make a contortionist envious.
In a moment that could only be described as a dramatic twist worthy of the finest literature, Bitfarms (BITF) has announced an initial agreement for a private debt facility of up to $300 million with none other than Macquarie Equipment Capital, Inc., a division of the illustrious Macquarie Group’s Commodities and Global Markets. What a mouthful!
This funding, my dear interlocutor, will support the initial development of Bitfarms’ high-performance computing (HPC) data center at the fabled Panther Creek, Pennsylvania—where dreams of reaching up to 500 MW of capacity are whispered in hushed tones.
Initially, a mere $50 million tranche has been drawn at the parent level to cover development soft costs and the ever-elusive general corporate purposes. The remaining $250 million, however, dangles like a carrot, contingent upon the achievement of key project milestones, at which point the facility becomes fully secured at the project level. Ah, the sweet taste of conditionality!
Each tranche, with its two-year term, carries an 8% annual interest, with the initial tranche featuring interest paid in kind for the first three months—because who doesn’t love a little delay in the inevitable financial reckoning?
The financing, replete with equity-linked warrants for Macquarie, is tied to future draws and priced at a 25% premium to recent trading averages. Bitfarms, in its infinite wisdom, will maintain minimum liquidity levels and comply with several customary covenants—because rules are meant to be followed, right?
CEO Ben Gagnon, in a moment of profound insight, highlighted the strategic importance of this partnership, noting Panther Creek’s advantageous location near major metropolitan areas and its multiple power sources that support efficient, redundant, and scalable operations. Truly, a masterstroke of corporate strategy!
And lo! Bitfarms shares are up 1.44% to a staggering 81 cents in early U.S. market trading. What a time to be alive! 😂
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2025-04-02 16:53