Bitfarms reduces credit facility with Galaxy Digital via sale of 1.5K bitcoins

Jun. 17, 2022 10:30 AM ETBitfarms Ltd. (BITF), BRPHFBTC-USDBy: Max Gottlich, SA News Editor17 Comments

Digitized Bitcoin Symbol via Getty Images

In an effort to increase financial liquidity amid turbulent crypto market conditions, Canadian-based bitcoin (BTC-USD) miner Bitfarms (NASDAQ:BITF) on Friday has reduced its $100M bitcoin-backed credit facility with Galaxy Digital (OTCPK:BRPHF) to $66M through the sale of 1.5K bitcoins.

“In addition to lowering our interest expense, this US$34 million reduction in borrowing gives us the ability to utilize more of our BTC holdings strategy as it frees up BTC that would otherwise be used to collateralize this credit facility,” Lucas added.

Bitfarms' (BITF) credit facility with crypto brokerage Galaxy Digital (OTCPK:BRPHF) expires on June 30, though both companies are in talks to renew the facility upon maturity.

Also, to support growth in Quebec, Bitfarms (BITF) has entered into an equipment financing deal with NYDIG for initial funding of $37M at an interest rate of 12% per year, collateralized by the miners at the its Leger and Bunker facilities.

“We have proactively taken non-dilutive strategic actions to increase our financial liquidity and flexibility during this period of macroeconomic crypto challenges,” said Bitfarms CFO Jeff Lucas. “Now we are better positioned to opportunistically consider potential farm expansion or acquisitions that arise as a result of recent market conditions."

Previously, (June 1) Bitfarms reported 3% increase in May daily average production.

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