Bitfarms announces a $44 million private placement with U.S. investors to expand its Bitcoin mining infrastructure and strengthen its working capital.
Bitfarms Ltd., a Canadian Bitcoin mining company, has initiated a private placement deal with U.S. institutional investors to raise approximately $44 million ($60 million CAD). This strategic deal, set to close around Nov. 28, entails the issuance of over 44 million common shares at 99 cents each, coupled with warrants for purchasing additional shares.
As Bitfarms mentions, the proceeds from this private placement will fund key growth initiatives, including acquiring new mining equipment, expanding infrastructure, and bolstering the company’s working capital.
Founded in 2017, Bitfarms contributes its computing power to various mining pools. The company operates 11 mining farms across Canada, the U.S., Paraguay and Argentina, emphasizing sustainable and environmentally friendly practices. Their operations are powered mainly by hydro-electric energy and long-term power contracts. The firm emphasizes that it’s committed to leveraging sustainable, locally sourced, and often underutilized energy resources.
Bitcoin mining activities have intensified in the past few months, specifically due to the upcoming halving event in 2024. Several miners have recently secured important funding and partnership deals. BTC mining difficulty also hit new highs earlier this week, with the hash price falling below $80.7 per day.