Bitfarms (BITF) has revealed a preliminary agreement to establish a private debt arrangement of as much as $300 million with Macquarie Equipment Capital, Inc., part of Macquarie Group’s Commodities and Global Markets division.
This funding will facilitate the initial development of Bitfarms’ high-performance computing (HPC) data center located at Panther Creek, Pennsylvania—anticipated to achieve a capacity of up to 500 MW.
A first tranche of $50 million has been secured at the parent company level to fund development soft costs and other corporate expenses. The remaining $250 million will be contingent on meeting key project milestones, at which point this facility will be entirely secured at the project level.
Each tranche is set for a two-year period and bears an annual interest rate of 8%. The first tranche will have interest paid in kind for the initial three months.
The agreement also includes equity-linked warrants for Macquarie, associated with future draws and priced at a 25% premium to recent trading averages. Bitfarms is required to uphold minimum liquidity levels and adhere to several typical covenants.
CEO Ben Gagnon emphasized the strategic significance of this partnership, pointing out Panther Creek’s favorable location near major urban centers and its multiple power sources that ensure efficient, redundant, and scalable operations.
In early U.S. trading, Bitfarms shares have risen by 1.44% to 81 cents.