Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a global Bitcoin
self-mining company, entered into a $32 million equipment financing
agreement.
“This equipment financing agreement provides
another source of non-dilutive capital, enabling us to finance
equipment from our established mining operations so that we can
invest growth capital into miner purchases and our new farms under
construction,” said Jeff Lucas, CFO of Bitfarms. “With bitcoin
(BTC) miner purchases making up the majority of our capital needs,
this $32 million equipment financing frees up working capital and
supports our flexible and non-recourse financing options, which
also include our recently announced $100 million BTC collateralized
loan facility.”
Under the terms of the financing agreement, the
Company entered into an equipment loan for the recent purchase of,
and is secured by, 6,100 Bitmain S19j Pros for a total of US$32
million. The loan carries a two-year term and an interest rate of
14.5%.
The financing was provided by BlockFi Lending
LLC. “We are pleased to partner with Bitfarms on this transaction.
Our goal is to support our client's working capital needs and
provide them with financial leverage for future growth,” said
Patrick Guerriero, Director of Miner Finance at BlockFi.
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. On February 24, 2022, the
Company was further honoured by the TSX-V as Venture 50 Winner,
placing first in the Technology sector.
Bitfarms has a diversified production platform
with five industrial scale facilities located in Québec, one in
Washington state, and one in Paraguay. 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/
About BlockFi Lending
LLCBlockFi is a crypto-financial services company focused
on harnessing the power of cryptocurrencies and blockchain payment
rails to create a globally accessible, crypto wealth management
platform. At BlockFi, we provide clients with broad access to a
suite of financial products and services, including crypto-backed
loans, interest-bearing accounts to store crypto assets, and the
world’s first crypto rewards credit card. Founded in 2017 by
Zac Prince & Flori Marquez, BlockFi is one of the
fastest-growing private fintech companies in the world currently
valued at $4.5 billion USD. Headquartered in Jersey City, NJ, we
serve over 1 million verified clients and 350 global financial
institutions with approximately $10 billion USD in assets under
management. BlockFi’s mission has always been to bridge traditional
and crypto-based financial products, and at the heart of those
efforts has been a focus on educating consumers about their
benefits and how to grow their wealth in crypto.
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 and are covered by safe harbors under Canadian and United
States securities laws. The information in this release regarding
the equipment loan with BlockFi Lending LLC and the benefits of
this and other debt financing initiatives, its expansion plans, and
other future plans and objectives of the Company are
forward-looking information.
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: 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; risks relating to the strategy of maintaining and
increasing Bitcoin holdings and the impact of depreciating Bitcoin
prices on working capital; 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; share
dilution resulting from 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 (which are also available on the website of the
U.S. Securities and Exchange Commission at www.sec.gov), 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
Executivemia@yapglobal.com
Québec Media:
Ryan Affaires publiques Valérie Pomerleau,
Public Affairs and Communicationsvalerie@ryanap.com
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