Bitfarms Ltd., a major player in the global Bitcoin mining sphere, has recently announced a significant milestone in its growth trajectory. The company unveiled its entry into subscription agreements with institutional investors, raking in an impressive C$60 million in a private placement within the United States.
The arrangement involves the issuance of 44,444,446 common shares at C$1.35 per share, coupled with warrants enabling the purchase of up to 22,222,223 additional common shares. These warrants boast an exercise price of C$1.61 (US$1.17) per share and a three-year exercise period, injecting further potential for expansion and investment opportunities.
Bitfarms has outlined a strategic plan for the utilization of these funds, primarily earmarking them for acquiring more miners, expanding infrastructure, and bolstering its working capital reserves. This investment aims to fortify the company’s position in the competitive Bitcoin mining landscape, positioning it for sustained growth and enhanced operational efficiency.
H.C. Wainwright & Co., serving as the exclusive placement agent, underscores the confidence placed in Bitfarms’ vision and potential within the market. The private placement is slated for closure around November 28, 2023, contingent upon customary closing conditions and Toronto Stock Exchange approval.
It’s important to note that the private placement refrained from offering securities to Canadian residents, adhering to regulatory parameters. The release emphasizes that it does not constitute an offer of securities for sale within the United States and underscores compliance with pertinent securities laws.
Bitfarms, established in 2017, stands as a publicly traded Bitcoin mining enterprise with a commitment to contributing computational power to mining pools and receiving compensation in Bitcoin. The company’s infrastructure comprises 11 farms spread across Canada, the United States, Paraguay, and Argentina, leveraging predominantly eco-friendly hydro-electric power sources and long-term energy contracts. This commitment aligns with Bitfarms’ ethos of sustainable and localized energy utilization.
The company’s unique proposition lies in its vertically integrated mining farms, bolstered by in-house management, electrical engineering capabilities, installation services, and dedicated onsite technical repair centers. Notably, Bitfarms employs a proprietary data analytics system, fostering operational excellence and high uptime, key factors in the competitive realm of cryptocurrency mining.
Source: https://azcoinnews.com/bitfarms-secures-60m-in-private-placement-to-fuel-bitcoin-mining-expansion.html
