Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a global Bitcoin
self-mining company, secured a $100 million credit facility with
Galaxy Digital LLC backed by Bitcoin (BTC).
“Bitcoin mining is a highly capital-intensive
industry. We seek to strike a balance between maximizing financing
flexibility and minimizing our overall cost of capital,” said Jeff
Lucas, CFO of Bitfarms. “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.”
“With over 3,300 BTC presently held in treasury,
we are leveraging the value of our BTC holdings while increasing
working capital flexibility. We plan to utilize these funds for
general corporate purposes in support of our goals of achieving
hash rates of 3 Exahash per second (EH/s) by March 31, 2022 and 8
EH/s by December 31, 2022, as well as future miner purchases,”
added Lucas.
$100 Million Bitcoin-backed Credit
Facility
On December 30, 2021, Bitfarms secured a $100
million BTC-backed credit facility with Galaxy Digital LLC, an
affiliate of Galaxy Digital Holdings Ltd, a provider of blockchain
and cryptocurrency financial services for institutions. This is a
revolving, multi-draw credit facility that automatically renews
annually. Bitfarms has made an initial $60 million draw with a
six-month term at an interest rate of 10.75% per annum. Anticipated
additional draws over the next few months, which would bring the
total borrowings to $100 million, are subject to customary TSX
Venture Exchange approval and would be expected to bear the same
interest rate and to be due on the same date as the initial
draw.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin
self-mining company, running vertically integrated mining
operations with onsite technical repair, proprietary data analytics
and Company-owned electrical engineering and installation services
to deliver high operational performance and uptime.
Having demonstrated rapid growth and stellar
operations, Bitfarms became the first Bitcoin mining company to
complete its long form prospectus with the Ontario Securities
Commission and started trading on the TSX-V in July 2019. On
February 24, 2021, Bitfarms was honoured to be announced as a
Rising Star by the TSX-V. On June 21, 2021, Bitfarms started
trading on the Nasdaq Stock Market.
Bitfarms has a diversified production platform
with five industrial scale facilities located in Québec and one in
Washington state. Each facility is over 99% powered with
environmentally friendly hydro power and secured with long-term
power contracts. Bitfarms is currently the only publicly traded
pure-play mining company audited by a Big Four accounting firm.
To learn more about Bitfarms’ events,
developments, and online communities:
Website: www.bitfarms.com
https://www.facebook.com/bitfarms/https://twitter.com/Bitfarms_iohttps://www.instagram.com/bitfarms/https://www.linkedin.com/company/bitfarms/
Cautionary Statement
Trading in the securities of the Company should
be considered highly speculative. No stock exchange, securities
commission or other regulatory authority has approved or
disapproved the information contained herein. Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange), Nasdaq, or
any other securities exchange or regulatory authority accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain
“forward-looking information” and “forward-looking statements”
(collectively, “forward-looking information”) that are based on
expectations, estimates and projections as at the date of this news
release. The information in this release regarding expectations in
respect of the Company’s anticipated future borrowings under the
new credit facility and use of debt to enhance its capital
structure, its expansion plans, anticipated mining capacity and
about other future plans and objectives of the Company are
forward-looking information. Other forward-looking information
includes, but is not limited to, information concerning: the
intentions, plans and future actions of the Company, as well as
Bitfarms’ ability to successfully mine digital currency, revenue
increasing as currently anticipated, the ability to profitably
liquidate current and future digital currency inventory, volatility
of network difficulty and digital currency prices and the potential
resulting significant negative impact on the Company’s operations,
the construction and operation of expanded blockchain
infrastructure as currently planned, and the regulatory environment
for cryptocurrency in the applicable jurisdictions.
Any statements that involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but
not always using phrases such as “expects”, or “does not expect”,
“is expected”, “anticipates” or “does not anticipate”, “plans”,
“budget”, “scheduled”, “forecasts”, “estimates”, “believes” or
“intends” or variations of such words and phrases or stating that
certain actions, events or results “may” or “could”, “would”,
“might” or “will” be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
information and are intended to identify forward-looking
information.
This forward-looking information is based on
assumptions and estimates of management of the Company at the time
they were made, and involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among
others, risks relating to: discretion of Galaxy Digital LLC in
respect of future borrowings under the new credit facility
(including as to the terms of such borrowings); the global economic
climate; dilution; the Company’s limited operating history; future
capital needs and uncertainty of additional financing including the
Company’s ability to utilize the Company’s at-the-market offering
(the “ATM Program”) and the prices at which the Company may sell
Common Shares in the ATM Program as well as capital market
conditions in general; the competitive nature of the industry;
currency exchange risks; the need for the Company to manage its
planned growth and expansion; the effects of product development
and need for continued technology change; protection of proprietary
rights; the effect of government regulation and compliance on the
Company and the industry; network security risks; the ability of
the Company to maintain properly working systems; reliance on key
personnel; global economic and financial market deterioration
impeding access to capital or increasing the cost of capital;
dilution in relation to the ATM Program and from other equity
issuances; and volatile securities markets impacting security
pricing unrelated to operating performance. In addition, particular
factors that could impact future results of the business of
Bitfarms include, but are not limited to: the construction and
operation of blockchain infrastructure may not occur as currently
planned, or at all; expansion may not materialize as currently
anticipated, or at all; the digital currency market; the ability to
successfully mine digital currency; revenue may not increase as
currently anticipated, or at all; it may not be possible to
profitably liquidate the current digital currency inventory, or at
all; a decline in digital currency prices may have a significant
negative impact on operations; an increase in network difficulty
may have a significant negative impact on operations; the
volatility of digital currency prices; the anticipated growth and
sustainability of hydroelectricity for the purposes of
cryptocurrency mining in the applicable jurisdictions, the ability
to complete current and future financings, any regulations or laws
that will prevent Bitfarms from operating its business; historical
prices of digital currencies and the ability to mine digital
currencies that will be consistent with historical prices; an
inability to predict and counteract the effects of COVID-19 on the
business of the Company, including but not limited to the effects
of COVID-19 on the price of digital currencies, capital market
conditions, restriction on labour and international travel and
supply chains; and, the adoption or expansion of any regulation or
law that will prevent Bitfarms from operating its business, or make
it more costly to do so. For further information concerning these
and other risks and uncertainties, refer to the Company’s filings
on www.SEDAR.com including the annual information form for the year
ended December 31, 2020, filed on April 7, 2021. The Company has
also assumed that no significant events occur outside of Bitfarms’
normal course of business. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those expressed in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on any forward-looking information. The Company undertakes
no obligation to revise or update any forward-looking information
other than as required by law.
Contacts
Investor Relations:
LHA Investor RelationsDavid Barnard+1 415 433
3777Investors@bitfarms.com
US Media:
YAP GlobalMia Grodsky, Account
Managermia@yapglobal.com
Québec Media:
Ryan Affaires publiques Valérie Pomerleau,
Public Affairs and Communicationsvalerie@ryanap.com
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