Canada-based Bitcoin (BTC) miner Bitfarms has agreed to close a $21 million loan from bankrupt crypto lending platform BlockFi with a single cash payment of $7.75 million..
Bitfarms announced in a press release yesterday that it received from bankrupt BlockFi. 32 million dollars remainder of the loan 21 million dollars part of $7.75 million announced that it was closing in exchange for a single cash payment. the previous loan 11 million dollars Bitcoin miner, who pays in installments, warned investors that he could not pay the remaining $ 21 million of his debt at the beginning of this year, and the debt agreement was closed. restructuring or to his advantage asked to be updated.
Like many miners, Bitfarms has been making efforts to reduce its debt over the past few months. in June 165 million dollars The amount of the debt of the company that owes the debt together with the last agreement. 25 million dollars fell.
This agreement is in a way difficult. Resulted in loss for BlockFi. Due to lack of liquidity, the company had to settle for one-third of the money it should normally have received.
Bitfarms CFO Jeff Lucas in his statement on the subject 85% He stated that the growth plans for the future have been clarified and gave the following details:
Reducing our debt from $165 million in June 2022 by approximately 85% to $25 million today has significantly reduced principal and interest liabilities, which increases our cash flow and puts us in a good position for future growth. This successful negotiation and settlement advances our initiatives to reduce indebtedness, improve liquidity and increase financial flexibility in line with today’s market conditions.
Bitfarms also operates in Washington state through the deal. Operates a 20 megawatt mining facility subsidiary To Backbone Mining Solutions belonging Mortgage of 6,100 miners has also been removed.