Bitfarms opens third $31 million private placement


TL;DR Breakdown:

  • Bitfarms has conducted another private placement of about $31 million shares.
  • The proceeds will be used to increase the company’s miner count, among other things.

One of the leading cryptocurrency mining companies in Canada, Bitfarms, announced another private placement of shares with a selected number of institutional investors in the United States. The company intends to raise about $31.3 million or CAD 40 million from the private placement, which is the largest it has conducted this year. The capital raised from the event will be used to purchase additional mining machines, according to the announcement on Monday.

Bitfarms to raise its mining capacity

In this latest private placement, the publicly-listed mining company entered into subscription agreements to issue 11,560,695 common shares to the institutional investors. This is expected to close on Wednesday, per the announcement. The proceeds will be directed towards growing Bitfarms’ mining machines, its mining infrastructure, and essentially increasing the working capital.

“We are pleased to announce our third financing,” said the CEO of Bitfarms, Emiliano Grodzki. “This additional financing will allow us to further grow our miner count and expand infrastructure. We are very pleased to continue to expand our institutional presence in the United States.”

For the same reason, Bitfarms already held two private placements of its shares, precisely on the 7th and 13th of January. They raised about $15.6 million or CAD 20 million from each of the private placements. This is all coming as part of Bitfarms’ goal to hold three exahash of hashing power before the end of the year.

It’s a game on

This is pretty much the goal of almost every cryptocurrency mining company: increasing the number of miners. Judging by this, the mining industry will become more competitive towards the end of the year. Bitcoin hashrate might also keep topping during the periods of active miner installation. Recently, the Chinese NYSE-listed mining company 500.com also announced plans to purchase additional 5,900 miners to bolster operations.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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