• Bitfarms Ltd. is restructuring its equipment loan facility terms to align with the market forecast and its company plan.
• On Feb. 18, 2022, BlockFi Lending LLC and Bitfarms‘ Backbone Mining Solutions, Inc. agreed to finance $32 million worth of equipment.
• The loan is secured by some of BMS’s assets, including its bitcoin miners and some of the bitcoin that those miners have produced, and the only entity that may take legal action against BMS to collect on the debt is BMS itself.
Bitfarms Ltd., a global organization that mines bitcoin, is taking significant steps to increase its financial flexibility, reduce its debt, and reduce the amount of money it needs to spend on capital expenditures. The Company has recently announced that it is restructuring its loan facility terms to ensure that they align with the market forecast and its company plan.
On Feb. 18, 2022, BlockFi Lending LLC, doing business as BlockFi, and Bitfarms‘ Backbone Mining Solutions, Inc., doing business as BMS, reached an agreement to finance $32 million worth of equipment. The loan is secured by some of BMS’s assets, including its bitcoin miners and some of the bitcoin that those miners have produced. The only entity that may take legal action against BMS to collect on the debt is BMS itself.
Despite the unfavorable market conditions, the Company is attempting to restructure its loan facility in Washington state to get terms that are more beneficial to its bottom line. The assets used as collateral for the loan now have a market value of around $5 million, as reported by BMS. As a result, the Company concluded that it would be prudent to negotiate better terms with BlockFi and take other steps to reduce its debt.
In addition to restructuring its loan facility terms, the Company is also making efforts to further reduce its debt. Jeff Lucas, Chief Financial Officer of Bitfarms, claims that the Company is committed to being a responsible corporate citizen and to taking measures to reduce its financial burden. He states that the Company is currently working to lower its debt and is looking for ways to reduce its capital expenditures.
Bitfarms Ltd. has taken a number of steps to ensure that it can remain a financially sound organization and continue to provide its customers with reliable and quality services. By restructuring its loan facility terms, the Company is hoping to get terms that are more beneficial to its bottom line and reduce its debt burden.