Montreal-based cryptocurrency mining company Bitfarms has secured $44 million USD ($60 million CAD) in a private placement deal with U.S. institutional investors. The strategic funding is set to close around November 28th.
Under the terms of the agreement, Bitfarms will issue over 44 million new common shares priced at 99 cents per share to the investors. The deal also includes share purchase warrants that give the investors the option to acquire more Bitfarms stock in the future.
Bitfarms states that the capital raised will be used to finance key growth plans, including expanding its mining infrastructure, buying additional mining equipment, and providing working capital.
Founded in 2017, Bitfarms runs bitcoin mining operations across North and South America, with 11 mining farms located in Canada, the United States, Paraguay and Argentina. The company uses predominantly hydroelectric power to sustainably power its mining activities.
The latest funding comes at a time when the bitcoin mining industry is ramping up capacity ahead of the bitcoin halving event expected in early 2024. Mining difficulty recently reached an all-time high as miners rush to capture their share of bitcoin rewards.
With the new financing, Bitfarms is well positioned to boost its mining power and take advantage of the current boom in cryptocurrency mining over the coming years.