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Bitfarms conducts a $31 million private placement with U.S. Institutional Investors

Bitfarms conducts a $31 million private placement with U.S. Institutional Investors

Bitfarms, one of the preeminent cryptocurrency mining companies in Canada, led another private placement of shares with an elected number of institutional investors in the United States. Crypto mining company Bitfarms plans to raise about $31.3 million or CAD 40 million from the private placement. This is the most extensive private placement it has conducted this year. As per the announcement on Monday, Bitfarms will utilize the capital driven to acquire additional mining machines.

Bitfarms came into existence in 2017. It functions vertically by combining mining operations with onsite technical repair, data analytics, and engineers to deliver the computing power required to drive the global decentralized financial economy’s rapid growth. Moreover, five industrial-scale facilities over Quebec, Canada, and is accountable for infrastructure activities of around 1% of the whole Bitcoin mining industry and periodic Bitcoin mined.

Bitfarms Public Placement may conclude on February 10, 2021

In Bitfarms recent private placement, the publicly-listed mining company penetrated subscription agreements to assign 11,560,695 common shares to the institutional investors. The private placement will terminate on or about February 10, 2021. However, the date is subject to customary closing conditions’ satisfaction and the TSX Venture Exchange’s approval. The proceeds will help develop Bitfarms’ mining machines, its mining infrastructure and significantly expand the working capital. Moreover, H.C. Wainwright & Co. is serving as the exclusive placement agent for the private placement in the U.S.

Emiliano Grodzko, the CEO of Bitfarms, opined that the team is excited to launch their third financing after completing two financings in January. This recent financing will enable the firm to develop the miner count further and expand infrastructure. For the same purpose, Bitfarms already conducted two private placements of its shares, specifically on January 7 and 13. They raised approximately $15.6 million or CAD 20 million from each of the private placements. This is for fulfilling Bitfarms’ goal of operating three exahash of hashing power before the end of 2021.

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