Bitfarms Seeks $300 Million via Convertible Note Offering

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Bitcoin miner Bitfarms Ltd. has filed to raise $300 million through an offering of convertible senior notes. The notes, which are unsecured and due in 2031, can be converted into cash, common shares of the company, or a combination of both at Bitfarms’ discretion.

According to the company, the proceeds will be used for general corporate purposes. A portion of the funds will also be used to set up capped call transactions, which are designed to limit potential dilution for existing shareholders by setting a conversion price premium of 125%.

The news prompted a 4.5% drop in BITF shares in after-hours trading, partially reversing a nearly 10% gain from the regular session. This move aligns with a broader trend of Bitcoin miners utilizing convertible notes as a cost-effective way to fund expansion and strategic initiatives.