Bitfarms Ltd., a North American Bitcoin mining company, has expanded its planned convertible note sale to $500 million, up from the $300 million announced just a day earlier, citing strong investor demand.
Key Takeaways:
Bitfarms increased its convertible note offering to $500 million, citing strong investor demand.
The company plans to use proceeds for general purposes and capped call transactions to limit share dilution.
Bitfarms’ stock remains up more than 80% this month amid renewed optimism in Bitcoin mining.
In a statement on Thursday, the Nasdaq- and Toronto-listed miner said it will issue 1.375% convertible senior notes due in 2031, with an option for initial purchasers to acquire an additional $88 million within 13 days.
The offering is expected to close around Oct. 21, pending Toronto Stock Exchange approval.
Bitfarms’ $500M Notes Offer 30% Premium Conversion Price, Maturing in 2031
The notes will accrue interest semi-annually starting July 15, 2026, and mature on Jan. 15, 2031.
They feature an initial conversion price of roughly $6.86 per share, a 30% premium to Bitfarms’ last closing price of $5.28.
Bitfarms said proceeds will be used for general corporate purposes and capped call transactions, which are designed to minimize share dilution if the notes are converted.
The company operates mining and high-performance computing facilities across North America, supported by a 1.3-gigawatt energy pipeline, with more than 80% of its capacity based in the U.S.
Bitfarms’ stock (BIFT) dropped 18.4% to $5.28 on Thursday and slipped another 5.3% in after-hours trading, according to Yahoo Finance data.
Despite the pullback, shares remain up more than 80% over the past month, reflecting renewed investor optimism in the Bitcoin mining sector as crypto markets rebound.
As reported, in May, Bitfarms faced a proposed investor class action after it disclosed plans to restate its 2022 and 2023 financial results.
The lawsuit accuses the company of improperly accounting for capital raising transactions and misleading shareholders.
The company reportedly failed to maintain adequate internal controls over financial reporting.
As a result, proceeds from digital asset sales were recorded as operating cash flow rather than investing cash flow. The firm also overstated its remediation of a material weakness tied to warrant transactions.
US Lawmaker Calls for National Security Probe Into China-Linked Bitcoin Mining Firms
In September, Congressman Zachary Nunn asked the US Treasury to launch a national security review of Chinese firms Bitmain and Cango, citing concerns over their expanding presence in the US crypto mining sector.
In a letter sent to Treasury Secretary Scott Bessent, Nunn pointed to opaque ownership structures, potential state ties, and risks to national infrastructure as grounds for a Committee on Foreign Investment in the United States (CFIUS) investigation.
Bitmain, which dominates over 80% of the global Bitcoin mining hardware market, and Nasdaq-listed Cango have both denied any merger plans.
Still, Nunn raised alarms over their growth strategies in the US, complex financing arrangements, and possible involvement in US energy infrastructure.
His concerns follow a $300 million equipment deal between Bitmain’s US arm and a Trump-linked mining firm.
Both companies have stated they comply with US laws and have no ties to foreign governments.
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