Bitcoin mining company Bitfarms increases convertible note size with an offering of up to $500million, which has market eyebrows on what it can do next.
Bitfarms Ltd. Bitcoin mining company, has significantly raised its convertible senior note offering to up to $500 million.
This growth follows only a day after the company had first suggested $300 million as an indication of vigorous capital raising.
The notes have an interest rate of 1.375 percent and a maturity date of 2031 and will be converted at a 30 percent premium to the last closing share price of Bitfarms of $5.28.
Capped Calls and Capital Strategy: A Precautionary Move?
Bitfarms has also entered into capped call transactions to restrain dilution among current shareholders.
To address conversion risks, these calls have a cap price of $11.88 per share, which is 125 percent higher than the prevailing trading price.
The company will use the funds collected for general corporate activities, such as funding these capped call transactions.
Market Reaction: Sharp Stock Dip Amid Upsized Offering
After announcing the upsized notes, the stock of Bitfarms experienced significant selling pressure, falling 18.4% on normal trading and 5.3% in after-hours trading to close around $5.28.
Although the stock dropped on Thursday, the company has achieved a strong 82.7% growth in the last month, with fluctuating investor confidence surrounding the financial gambles of the company.
The issuance of this convertible note is anticipated to close by approximately October 21, 2025, subject to regulatory permission by the Toronto Stock Exchange.
Bitfarms has several crypto mining and high-performance computing centers in North America, which are largely dependent on its energy pipeline of 1.3 GW in the U.S.