Friday, September 12, 2025

Latest

Bitfarms Reaches $7.8 Million Settlement On $21 Million Debt Facility

It appears that a gamble by Bitfarms Ltd (TSX: BITF) to default on its debt as a means of renegotiating a loan has paid off handsomely for the company.

In mid-January, the firm indicated via press release that it was considering defaulting on a loan between Backbone Mining Solutions, a subsidiary of the Bitfarms, and that of BlockFi Lending. The debt was related to a $32 million equipment financing facility, with the value of the security significantly underwater as a result of the equipment depreciating so quickly.

Bitfarms at the time said the equipment was worth roughly just $5.0 million, resulting in a loan to value of over 400%.

With $21 million in debt remaining, which was secured just by the equipment that debt purchased and some of the related bitcoin, Bitfarms debated taking a gamble by defaulting on the debt to force renegotiations. That gamble evidently worked, with the company this morning revealing that its $21 million debt obligation was reduced down to $7.75 million, which is to be paid via a single cash payment.

That payment was reportedly made on February 8, with its assets under the Backbone Mining Solutions subsidiary now unencumbered.

READ: Bitfarms Sees Flat Bitcoin Production In January As Debt Paydown Continues

“Lowering our debt nearly 85% from a high of $165 million in June 2022 to $25 million today has significantly decreased principal and interest obligations, which boosts our cash flow and positions us well for future growth,” commented CFO Jeff Lucas.

The company as a result of the settlement expects to be debt free before February 2024.

Bitfarms last traded at $1.43 on the TSX.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Bitfarms Approved To List On Nasdaq

Bitfarms Ltd (TSXV: BITF) is the latest Canadian venture to be approved for listing on...

Friday, May 7, 2021, 07:35:23 AM

Bitcoin Miners Dramatically Outperformed Bitcoin Over The Last Six Months

Given the explosive performance of Bitcoin over the past six months, and the even more...

Wednesday, January 20, 2021, 11:57:00 AM

Bitfarms Acquires Additional Miners, Pushing Capacity To 2.5 EH/s By Year End

Bitfarms (TSXV: BITF) continued to plod along its path of becoming the largest public bitcoin...

Thursday, May 6, 2021, 07:27:40 AM

Bitfarms Produces 236 BTC in October

Bitfarms (TSX: BITF) on Friday reported its bitcoin production data for the month of October....

Friday, November 1, 2024, 08:37:17 AM

Bitfarms Hits Hashrate Milestone Of 7 EH/s For Bitcoin Mining

Bitfarms Ltd (TSX: BITF) is reporting this morning that it has reached a new milestone...

Friday, April 12, 2024, 09:21:08 AM