Bitfarms (NASDAQ: BITF) has closed its upsized offering on $588 million convertible at 1.375% due 2031, including full exercise of the $88 million option granted to initial purchasers.
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The notes carry an initial conversion rate of 145.6876 common shares per $1,000 principal amount, equivalent to a conversion price of approximately $6.86 per share, roughly a 30% premium to BITF’s $5.28 closing price on October 16.
Bitfarms netted proceeds of approximately $568 million after discounts and commissions but before the cost of capped-call transactions. Bitfarms deployed cash on hand to purchase capped calls, initially capped at $11.88 per share (a 125% premium) to limit economic dilution upon conversion.
CEO Ben Gagnon said the deal introduces high-quality institutional partners, and strengthens Bitfarms’ balance sheet to over $1 billion of cash.
Recently, Bitfarms converted a $300 million credit facility with Macquarie to a project-specific loan tied to Panther Creek.
Read More: Bitfarms CFO Jeff Lucas to retire as Jonathan Mir named successor\
At time of publication, BITF is down 7.5% during pre-market hours.
