Bitfarms Ltd. [NASDAQ: BITF] disclosed that it has got a $100 million credit facility. Bitfarms obtained a $100 million BTC-backed credit facility with Galaxy Digital LLC, an associate of Galaxy Digital Holdings Ltd on December 30, 2021. This is a revolving, multi-draw credit facility that automatically recommences yearly.
Bitfarms has taken out a $60 million loan with a six-month duration and a 10.75 percent annual interest rate. Additional draws scheduled over the next few months, bringing the total loan to $100 million, are contingent on TSX Venture Exchange clearance and are likely to have the same interest rate as the initial draw and be payable on the same date.
In addition, Bitcoin mining is a capital-intensive business. The corporation is attempting to find a balance between increasing financing flexibility while lowering overall capital costs. Its new $100 million BTC credit facility complements its diversified financing strategy and offers significant non-dilutive cash to fuel its worldwide growth efforts, which include the construction of four farms with a total capacity of 298 Megawatts.
Furthermore, with over 3,300 BTC in treasury, it has increased working capital flexibility while leveraging the value of its BTC holdings. It intends to use the cash for general company objectives, including future miner purchases, as well as attaining hash rates of 3 Exahash per second (EH/s) by March 31, 2022, and 8 EH/s by December 31, 2022.