Bitfarms Ltd (TSXV: BITF) is looking to expand its operations in a hurry through non-dilutive means, The firm this morning announced an arrangement with Galaxy Digital (TSX: GLXY), whereby it will borrow funds via a bitcoin-backed credit facility.
The arrangement will see Bitfarms borrow a total of $100 million from Galaxy, in multiple tranches. The multi-draw facility will see an initial $60 million provided to Bitfarms for a six month term, with the debt bearing interest at a rate of 10.75% per annum. Further draws remain subject to approval.
Funds from the financing are to be used for growth initiatives, which reportedly includes the firms focus of obtaining a hash rate of 3 EH/s by March 31, and of 8 EH/s by the end of 2022.
Further details on the facility were not provided.
Bitfarms last traded at $6.52 on the TSX Venture.
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