Bitfarms Secures Initial $300 Million Debt Facility for HPC Data Center
Bitfarms (BITF) has secured an initial agreement for a private debt facility of up to $300 million with Macquarie Equipment Capital, Inc.
- Funding will support the development of a high-performance computing data center in Panther Creek, Pennsylvania, targeting up to 500 MW capacity.
- Initial tranche of $50 million drawn for development costs and corporate purposes.
- Remaining $250 million contingent on key project milestones, becoming fully secured at the project level.
- Each tranche has a two-year term with an 8% annual interest rate; initial tranche has interest paid in kind for the first three months.
- Financing includes equity-linked warrants for Macquarie, tied to future draws at a 25% premium to recent trading averages.
- Bitfarms must maintain minimum liquidity levels and comply with customary covenants.
- CEO Ben Gagnon emphasized the strategic location of Panther Creek near major metropolitan areas and its multiple power sources.
Bitfarms shares increased by 1.44% to 81 cents during early U.S. market trading.