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Seeking Alpha 2023-02-09 15:09:55

Bitfarms clears $21M debt owed to BlockFi for $7.75M

Bitfarms ( NASDAQ: BITF ) said Thursday it modified its loan deal with BlockFi Lending to settle all outstanding principal and interest due totaling $21M for a single cash payment of $7.75M. Last year, the cryptocurrency miner's unit Backbone Mining Solutions entered into a $32M equipment financing facility with BlockFi. On February 8, BlockFi retired the loan in its entirety and discharged all further obligations for $7.75M in cash. Following this, Backbone's assets - including 6.1K miners - are unencumbered. "Lowering our debt nearly 85% from a high of $165M in June 2022 to $25M today significantly decreased principal and interest obligations, which boosts our cash flow," said Bitfarms ( BITF ) CFO Jeff Lucas. "Our remaining debt, mostly secured by new, high efficiency mining equipment in Quebec, matures on or before February 2024, enabling us to be debt free before the next halving event expected in May 2024," he added. However, shares of Bitfarms ( BITF ) fell 5.1% in morning trade on Thursday. Last month, Bitfarms ( BITF ) said it was seeking more favorable terms from BlockFi owing to the crypto market downturn .

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