Canadian Bitcoin mining company Bitfarms has secured a private debt facility of up to $300 million from the Australian investment firm Macquarie to support its Panther Creek data center project in Pennsylvania.
The Beginning of Cooperation
Bitfarms has signed an initial agreement for a private debt facility of up to $300 million from Macquarie Equipment Capital. The funds will be used to develop the Panther Creek data center project in Pennsylvania.
Loan Terms and Importance
According to the agreement, the first tranche of the loan is $50 million, with the rest available if specific development milestones are achieved. Bitfarms CEO Ben Gagnon highlighted that the financing comes at a pivotal time amid the AI revolution and increasing infrastructure needs. "The maturity of each facility is two years from the date of closing. Each facility will bear interest at a rate of 8% per annum, with interest on the initial draw of $50 million paid in kind for the first three months."
Implications and Previous Acquisitions
The announcement of the deal led to a 2.54% rise in Bitfarms shares on Nasdaq. This agreement comes weeks after Bitfarms completed its all-stock acquisition of Stronghold Digital Mining through a stock-for-stock merger, resulting in Stronghold's shares being delisted from Nasdaq.
The funding from Macquarie marks a significant step for Bitfarms in developing the Panther Creek data center, strengthening its position in high-performance computing.
