Bitfarms secured a major financial deal. The company announced the initial deal with Macquarie Group on an up to $300 million private debt facility.
This agreement represents a key step toward Bitfarms’ high-performance computing (HPC) growth at Panther Creek, Pennsylvania. The initial drawdown is $50 million.
The remaining up to $250 million are made available as project milestones are completed. Additionally, this financing should help drive Panther Creek’s buildout of its data center facilities without sacrificing shareholder value.
CEO Ben Gagnon expressed enthusiasm about the deal. He said:
We are thrilled to partner with Macquarie, a global leader in infrastructure investment with deep expertise and relationships across the HPC-related infrastructure value chain.
Bitfarms’ strategic growth and financial advantage
Panther Creek can achieve up to 500 MW capacity. Situated within the PJM region allows it to be near major cities such as Philadelphia and New York. Multiple power supplies make the site reliable and cost-effective.
However, Bitfarms sees this deal as validation of its growth strategy. CFO Jeff Lucas highlighted the financial advantages. He stated,
With an interest rate of 8%, we believe we can fund our energy and HPC infrastructure development at a significantly lower cost of capital and with much less dilution than equity funding, creating long-term shareholder value.
It includes an 8% per annum interest-bearing loan term of two years. In this way, Macquarie would also be entitled to stock warrants of Bitfarms.
AI and HPC demand are driving Bitfarms to become a prominent industry player. The recent acquisition by the company of Stronghold Digital Mining and the recent hires of HPC and infrastructure leaders are definitive indicators of their focus on growth in the future.
Nonetheless, this acquisition paves the way for Bitfarms to increase its presence in the swiftly changing world of HPC. With the completion of the Panther Creek project, the ability of the company to offer high-quality, scalable infrastructure will be closely observed.
