Crypto merchant bank Galaxy Digital has opened a $100 million credit line for the Canadian public mining company Bitfarms, secured by Bitcoin.
Bitfarms secured a $100 million credit facility with @GalaxyDigitalHQ backed by #Bitcoin ($BTC) pic.twitter.com/We50NdQgh1
— Bitfarms (@Bitfarms_io) December 31, 2021
According to the press release, the firm has already drawn $60 million for six months at an annual rate of 10.75%. The remaining amount will be drawn in the coming months.
“The new $100 million credit facility adds another component to our diversified financing strategy,” said Bitfarms’ chief financial officer Jeff Lucas.
Bitfarms will deploy the funds to bring the hash rate to 3 EH/s by March 31, and to 8 EH/s by December 31, 2022. According to the company, as of mid-November the figure stood at 2 EH/s.
In October Bitfarms began construction of a data centre for 55,000 miners in Argentina. Later it announced the acquisition of a $26 million data centre with a capacity of 24 MW in the state of Washington, USA.
In the third quarter the company mined 1,050 BTC, up 38% from the same period a year earlier. By the end of September its reserves stood at 2,312 BTC, and in December, more than 3,300 BTC.
In June, Galaxy Digital provided a loan to the British mining company Argo Blockchain of £14 million (about $19.4 million) backed by Bitcoin.
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