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- Bitfarms secures a $300M facility to build an HPC data center in Pennsylvania.
- The initial $50M draw supports development costs, with $250M contingent on milestones.
- Bitfarms’ stock rose 1.44% following the announcement of the financing deal.
Bitfarms has reserved a private debt facility of up to $300 million from Macquarie Equipment Capital. This funding will help the company build its high-performance computing (HPC) data center at Panther Creek in Pennsylvania. The center is expected to reach 500 MW of capacity, marking a significant step in Bitfarms’ expansion into HPC.
Initial Draw and Terms of the Facility
According to a post on X by Bitfarms, the agreement provides an initial $50 million draw, which will be used for early-stage development costs. This includes covering soft costs and general corporate expenses. The remaining $250 million will be available once specific milestones are achieved. At that point, the financing will transition to project-level funding.
The two-year facility carries an annual interest rate of 8%. The initial tranche will have interest paid in kind for the first three months. Each subsequent tranche will follow the same terms and is tied to project completion. The Panther Creek site, located near key U.S. metropolitan areas, offers a strategic advantage due to its multiple power sources.
These factors will support efficient and scalable operations. Bitfarms aims to capitalize on this location to expand its HPC capabilities, a significant shift from its previous focus on traditional mining operations. The company plans to maximize the site’s potential and meet the growing demand for high-performance computing.
Financing Structure and Capital Flexibility
As part of the deal, Macquarie will receive equity-linked warrants. These warrants are linked to future draws and priced at a 25% premium to recent trading averages. This structure allows Bitfarms to secure capital without diluting its equity. It also ensures that the company maintains the flexibility to meet liquidity needs and adhere to customary covenants.
Stock prices for Bitfarms increased minimally after they made their announcement. The company’s shares rose by 1.44% to 81 cents during early U.S. market trading. The stock market showed rising interest in Bitfarms’ evolving business model and potential growth from entering the HPC sector.
The funding agreement stands as an essential milestone for Bitfarms because it enables the company to develop high-performance computing capabilities and secure money that supports Panther Creek’s operation growth.
