Saturday, August 2, 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

Royal Gold Goes Big | $3.5 Billion Sandstorm Acquisition

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Bitfarms Mines 12.6 Bitcoin Per Day In July

Bitfarms (TSXV: BITF) this morning provided the market with a brief update in terms of...

Thursday, August 5, 2021, 09:15:23 AM

Bitfarms: Investors Ignore Low-Cost Power Purchase Agreement in Argentina

On April 19, Bitfarms Ltd. (TSXV: BITF) announced that it had finalized an attractive power...

Saturday, April 24, 2021, 09:00:00 AM

Bitfarms Closes Out 2022 With Management Shake-Up

Bitfarms (TSX: BITF) is undergoing an end-of-year management shakeup of sorts. The firm has slightly...

Thursday, December 29, 2022, 09:03:22 AM

Bitcoin Miners Have Displayed Unusual Trading Patterns Versus Bitcoin Itself

Bitcoin has doubled over the last three months, surpassing its April 2021 high, and shows...

Thursday, October 21, 2021, 03:48:00 PM

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