Bitfarms Receives $300M Loan to Support AI and Data Center Development

Canadian mining company Bitfarms has secured up to $300 million in a private loan from Australian multinational investment firm Macquarie to fund the expansion of its data center.

Bitfarms has reached a preliminary agreement to obtain a private credit facility of up to $300 million from Macquarie Equipment Capital to support its Panther Creek data center project in Pennsylvania.

In a press release on April 2, the Canadian cryptocurrency mining company said the first payment on the loan would be $50 million, with the remainder available if the company “reaches certain development milestones.”

Bitfarms CEO Ben Gagnon said the partnership with Macquarie is the start of an investment in the “short-term growth” of the Panther Creek data center, adding that the funding “comes at the perfect time” amid the rapidly evolving AI revolution and increasing demand for energy and infrastructure.

“Each loan will have a maturity of two years from the closing date. Each loan will bear interest at an annual rate of 8%, with interest on the initial $50 million loan to be paid in kind for the first three months.”

Bitfarms

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Joshua Stevens, associate director at Macquarie, emphasized that the location is “within 100 miles of New York and Philadelphia,” which could make it attractive to high-performance computing tenants. Bitfarms shares rose 2.54% on the Nasdaq following the announcement.

The loan agreement comes just weeks after Bitfarms completed its acquisition of all shares of Stronghold Digital Mining in a share-for-share merger, resulting in Stronghold shareholders receiving 2.52 Bitfarms shares for every Stronghold share they hold.

As reported by crypto.news, the deal involved the issuance of about 60 million Bitfarms shares and over 10.5 million orders, while Stronghold shares were delisted from Nasdaq and discontinued.

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Source: cryptonews.net