- Bitfarms Ltd. announces a $300 million offering of convertible senior notes due in 2031.
- The company has granted an option to purchase up to an additional $60 million.
- Capped call transactions are used to limit the dilution risk to 125%.
Bitfarms is set to raise $300 million through a convertible notes offering due 2031, aiming to fund corporate needs and capped call transactions. Shareholder dilution risk is managed with a cap at 125% of the pricing-day share price.
Bitfarms Ltd., a leading North American digital infrastructure company, has initiated a $300 million convertible senior notes offering due in 2031. This offering has been announced through Bitfarmsโ official press releases and documentation.
โBitfarms intends to offer US$300 million aggregate principal amount of convertible senior notes due 2031โฆ The Company expects to grant the initial purchasersโฆ an option to purchaseโฆ up to an additional US$60 millionโฆ Subject to market and other conditions (including receipt of Toronto Stock Exchange approval)โ โ Bitfarms, Official Press Release
Bitfarms Ltd., with Geoff Morphy as the President and CEO, has designated the proceeds for general corporate purposes and to establish capped call transactions to mitigate dilution risk.
The offering proposes up to $360 million, including an option for initial purchasers. The funding structure involves convertible notes that mature in 2031, with capped calls designed to protect against dilution up to 125%.
The companyโs equity on NASDAQ/TSX may be impacted, with indirect effects on Bitcoin through Bitfarmsโ mining expansion. However, the broader crypto asset market remains largely unaffected.
Historical patterns show Bitcoin miners leveraging convertible note offerings for capital when expanding or refocusing operations. Similar actions by companies like Riot Platforms have influenced share prices and Bitcoin treasuries but had minimal market-wide crypto impacts unless associated with large BTC sales.
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