Bitfarms, a worldwide computer infrastructure firm specializing in Bitcoin mining, has secured a loan agreement valued at $300 million with Macquarie Group to support the establishment of its high-performance computing (HPC) data centers.
In an announcement made on April 2, it was revealed that Macquarie’s private debt offering will initially provide $50 million in funding for the Panther Creek data center project located in Pennsylvania.
The remaining $250 million will be accessible once Bitfarms meets “specific development milestones at its Panther Creek site,” according to the details provided.
Upon completion, Panther Creek is expected to boast a capacity of nearly 500 megawatts, powered by various energy sources.
Joshua Stevens, an associate director at Macquarie Group, mentioned that once construction begins, Panther Creek “will be attractive to HPC tenants.”
Image: Bitfarms
This initiative comes at a time when there is a rising demand for new sources of computational power and data storage capacity driven by AI applications. Bitcoin miners are eager to address this demand and secure sustainable revenue streams following the most recent halving.
However, Bitfarms reported in its latest quarterly update that it continues to encounter “regulatory challenges in expanding its energy capacity,” with the timeline for approvals ranging from 12 to 36 months.
In the interim, CEO Ben Gagnon informed investors that the company’s $125 million purchase of Stronghold Digital Mining is geared to significantly increase capacity.
Related: Bitfarms sells Paraguay site to Hive for $85M, refocuses on US
Facing industry pressures, miners are holding on
In the last quarter of 2024, Bitfarms mined 654 Bitcoin (BTC) at an average all-in cash cost of $60,800.
Much like others in the industry, Bitfarms has decided to keep a substantial portion of its mined Bitcoin. Current data indicates it holds 1,152 BTC, positioning it among the top 25 publicly traded Bitcoin investors.
Companies like Hive Digital have reaffirmed their long-term Bitcoin “hodl” strategy to strengthen their financial positions, reporting increased Bitcoin holdings totaling 2,620 BTC.
Meanwhile, MARA Holdings has amassed 46,374 BTC and has announced intentions for a $2 billion stock offering aimed at acquiring more Bitcoin.
Image: Frank Holmes
Similar to Bitfarms, Hive Digital, Core Scientific, Hut8, and Bit Digital have also shifted strategically toward AI and HPC.
Hive executives shared that they have repurposed a segment of their Nvidia GPUs for these purposes, stating that AI applications can generate revenue exceeding $2.00 per hour, in stark contrast to the mere $0.12 per hour derived from crypto mining.
Related: BTC miners adopted ‘treasury strategy,’ diversified business in 2024: Report