Bitfarms collects initial $5m in lending agreement with Dominion Capital

Bitfarms, a cryptocurrency mining platform, has collected $5m in a loan agreement with DC BFL SPV, an affiliate of investment firm Dominion Capital.

The deal is part of a wider $20m debt financing agreement and will be completed over across a further three tranches of $5m. As part of the deal, the final trance permits the lender to purchase common shares of Bitfarms at $0.40.

Dominion will be allowed to purchase 6.6 million shares in the company, which would give it a stake of around 11.7 per cent.

Bitfarms is a blockchain-based cryptocurrency mining platform based in North America. The company currently has four warehouses based in Canada, using hydroelectricity to mine coins in an environmentally conscious manner.

Bitfarms CEO Wes Fulford said, “The Loan Financing will enable us to pursue Bitfarms’ expansion strategy, underpinned by our large and economical 162.5-megawatt portfolio of green energy within the province of Québec.

“Current hardware pricing presents a compelling opportunity to invest in our operational build-out. We plan to purchase new generation, higher efficiency mining hardware for our expansion and will begin immediate construction of Phase 1 and Phase 2 of our new modern computing centre within the municipality of Sherbrooke, Québec.

“ Proceeds from the Loan Financing are expected to increase our installed operational capacity by approximately 30 megawatts, in addition to utilizing the full capacity of our current (4) operational facilities,”

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