Bitfarms Expands Convertible Note Offering to $500M as Investor Demand Surges
Bitcoin miner Bitfarms just turbocharged its fundraising ambitions—bumping its convertible note offering to a whopping $500 million.
Wall Street Can't Get Enough
Strong investor demand forced the company's hand. The mining operation originally planned a smaller offering, but institutional money came knocking harder than expected.
Fueling the Bitcoin Machine
That half-billion dollar war chest will likely fund more mining rigs, energy infrastructure, and maybe even some strategic acquisitions. Because in crypto mining, you either scale up or get left behind.
Another day, another nine-figure raise in crypto—because apparently traditional banks aren't moving fast enough for Wall Street's taste anymore.
Details of Bitfarms’ offering
The notes, which mature on Jan. 15, 2031, will accrue interest at 1.375% annually, payable twice a year. They are senior unsecured obligations and may be redeemed, repurchased, or converted under specific conditions. The initial conversion price is set at approximately $6.86 per share, a 30% premium over Bitfarms’ Oct. 16 Nasdaq closing price of $5.28.
Bitfarms will also enter into capped call transactions to mitigate potential dilution from note conversions. These privately negotiated arrangements cover the number of shares underlying the notes, with a cap price of $11.88 per share, representing a 125% premium over the company’s latest market price. The company intends to fund these capped calls using proceeds from the offering or existing cash on hand.
Proceeds will be used for general corporate purposes and to support Bitfarms’ capital expansion in artificial intelligence and high-performance computing.
Strategic context and market impact
Convertible note offerings have grown in popularity among mining companies looking for non-dilutive funding for capital-intensive expansion.
Investor trust in Bitfarms’ changing approach is demonstrated by the decision to increase the offering. Due to its shift from traditional Bitcoin mining to AI and HPC infrastructure, the company’s stock has surged by more than 530% in just six months.
Recent developments include a $300 million Macquarie debt facility for its Panther Creek site, new partnerships in AI data centers, and second-quarter revenue growth of 87% year-over-year to $78 million. Analysts maintain a consensus “Buy” rating, with expectations of profitability in 2025.
