- Bitfarms Ltd. (BITF) has provided an update regarding the $20 million indebtedness for one of its U.S. subsidiaries
- The subsidiary, Backbone Mining Solutions Inc., signed a $32 million equipment financing facility with BlockFi Lending LLC last February
- It operates Bitfarms’ 20-megawatt active crypto mining facility in Washington state
- The value of the assets securing the loan is estimated to be approximately $5 million, while the amount owed is around $20 million
- Bitfarms stated it will seek ‘more favourable terms’ with BlockFi to reduce loan obligations
- Bitfarms Ltd. (BITF) is up 9.47 per cent, trading at $1.44 per share as of 11:34 a.m. EST
Bitfarms Ltd. (BITF), a global self-mining Bitcoin company, has provided an update regarding the $20 million indebtedness for one of its U.S. subsidiaries.
The subsidiary, Backbone Mining Solutions Inc., signed a $32 million equipment financing facility with BlockFi Lending LLC last February, which is secured by some of its assets. It operates Bitfarms’ 20-megawatt active crypto mining facility in the state of Washington.
Jeff Lucas, CFO of Bitfarms, stated,
“Considering today’s challenging market conditions, we are seeking to modify our Washington state debt facility to achieve terms that are better aligned with the market outlook and our business strategy.”
The company stated the current market value of the assets securing the loan is estimated to be approximately $5 million, while the amount owed is around $20 million. Because of this, Bitfarms stated it will seek ‘more favourable terms’ with BlockFi to reduce loan obligations.
The company has already taken certain actions that establish defaults under the loan agreement and entitled BlockFi to exercise various rights and remedies against Backbone and in respect of the collateral.
BlockFi’s exercise of its rights may lead to extra charges to the company and potentially even the termination of operations at the Washington facilities.
By the end of 2022, Bitfarms and its subsidiaries had cash and crypto assets worth approximately $36 million. The company believes will support its ongoing operations and loan agreements for the foreseeable future.
Bitfarms Ltd. (BITF) is up 9.47 per cent, trading at $1.44 per share as of 11:34 a.m. EST.