Bitcoin Miner Bitfarms Raises $44 Million in Private Placement

Canadian bitcoin mining firm Bitfarms has raised C$60 million, or about $44 million, in a private placement.

The publicly traded mining operation said in an announcement on Friday that it expects to close the raise on Nov. 28 by issuing 44 million common shares to certain institutional investors in the U.S.

The placement also comes with warrants to buy additional up to 22 million shares at an exercise price of $1.17 with an exercise period of three years.

The private placement follows the $31 million in equity financing that Bitfarms raised in Q3 and $37 million in the first half of this year. Its outstanding common stocks have hence been diluted by over 16% since earlier this year.

Bitfarms said the net proceeds will be mainly for capital expenditures including buying additional miners and expanding its mining infrastructure while improving its working capital.

As of Sept. 30, Bitfarms had a working capital of $54 million, which improved significantly compared to $1.8 million as of the end of 2022 due to its continuous deleveraging efforts throughout this year.

According to Bitfarms’ October update, its outstanding indebtedness was further reduced by $1.9 million and had a remaining balance of $7.9 million as of the end of last month.