Bitfarms Signs Initial Agreement for Private Debt Facility with Macquarie Division

Bitfarms Ltd. has recently announced an initial agreement for a private debt facility of up to $300 million from Macquarie Equipment Capital, Inc. This division of Macquarie Group, a leading infrastructure investor, will provide Bitfarms with essential capital for its High-Performance Computing (HPC) data center development projects, starting with the Panther Creek location.

The first phase of this financing agreement involves a $50 million draw, with the potential for an additional $250 million as Bitfarms progresses through specific development milestones at Panther Creek. Ultimately, the total project debt facility could reach $300 million, exclusively secured at the project level and terminating the initial loan. These facilities come with a two-year maturity period and an 8% annual interest rate, with interest on the initial $50 million draw being paid in kind for the first three months.

Ben Gagnon, CEO of Bitfarms, expressed excitement about partnering with Macquarie, highlighting their deep expertise and relationships in HPC-related infrastructure investments. The focus of this partnership is the development of the Panther Creek data center, strategically located in the PJM region of Pennsylvania, near major metropolitan areas like Philadelphia and New York City. With a potential capacity of nearly 500 MW supported by multiple power sources, Panther Creek offers reliability, redundancy, and cost-efficiency benefits for potential HPC clients.

Gagnon emphasized that this funding comes at a crucial time for Bitfarms, following the acquisition of Stronghold Digital Mining and key executive appointments in the HPC and infrastructure sectors. The expertise provided by strategic partners, including ASG and WWT, along with Macquarie’s due diligence and industry knowledge, reaffirms Bitfarms’ position as a leader in developing large-scale, high-quality HPC data center projects.

The agreement with Macquarie validates Bitfarms’ HPC opportunity strategy at Panther Creek, accelerating its buildout and paving the way for future collaborations with Macquarie. This move aligns with the increasing demand for power and infrastructure in the midst of the AI revolution, positioning Bitfarms as a prominent player in the sector.

As Bitfarms embarks on this significant investment in HPC infrastructure, the partnership with Macquarie underscores the attractiveness and potential of its data center development pipeline. This funding enables Bitfarms to advance its projects in a non-dilutive manner, marking a substantial step forward in the company’s growth and strategic expansion plans within the HPC sector.