Bitcoin miner Bitfarms secured a $100 million credit facility from blockchain and cryptocurrency financial services provider Galaxy Digital Holdings. The facility is backed by the company’s bitcoin holdings.
The Toronto-based miner has already drawn down $60 million at an interest rate of 10.75% per year with a six-month term and expects to draw more over the next few months, according to a statement.
“Our new $100 million BTC credit facility adds another component to our diversified financing strategy and contributes significant non-dilutive capital to fund our global growth initiatives, which include four farms with 298 megawatts mining capacity under construction,” Chief Financial Officer Jeffrey Lucas said.
Bitfarms intends to use the funds to reach a hashrate of 3 exahashes per second (EH/s) by March 31 and 8 EH/s by Dec. 31 of next year. Exahashes are a measure of the computational power of the specialized computers, called “miners,” that mint bitcoin and process bitcoin transactions.
The miner said it has more than 3,300 bitcoins in its treasury.
On Dec. 1, the company said it mined 339 bitcoins in November, down from 343 in October, as network difficulty increased. It reached a hashrate of 2 EH/s in mid-November.
Before its deal with Bitfarms, Galaxy Digital had already loaned at least $65 million to public mining companies this year, according to a report by Compass Mining.
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