Canadian mining company Bitfarms has raised up to $300 million in a private loan from Australian multinational investment firm Macquarie to fund the expansion of its data center.
Bitfarms has reached a preliminary agreement to secure a private credit facility of up to $300 million from Macquarie Equipment Capital to support its Panther Creek data center project in Pennsylvania.
In a press release on April 2, the Canadian cryptocurrency mining company said the first tranche of the loan would be $50 million, with the remaining amount available subject to the company “reaching certain milestones of progress.”
Bitfarms CEO Ben Gagnon said the partnership with Macquarie marks the start of an investment in the “near-term growth” of the Panther Creek data center, adding that with the AI revolution rapidly growing and demand for energy and infrastructure increasing, the funding “comes at a pivotal time.”
“Each loan will have a maturity of two years from the closing date. Each loan will bear interest at a rate of 8% per annum, with interest on the initial $50 million disbursement to be paid in kind over the first three months.”
Bitfarms
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Joshua Stevens, associate director at Macquarie, noted that the location is “within 100 miles of New York and Philadelphia,” which could make it attractive to high-performance computing tenants. Bitfarms shares rose 2.54% on the Nasdaq following the announcement.
The loan agreement was signed just weeks after Bitfarms completed its acquisition of all shares of Stronghold Digital Mining in a share-for-share merger, resulting in Stronghold shareholders receiving 2.52 Bitfarms shares for every Stronghold share they hold.
According to crypto.news, the deal involved the issuance of about 60 million Bitfarms shares and over 10.5 million orders, while Stronghold shares were delisted from Nasdaq and discontinued.
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Source: cryptonews.net
