Street Calls of the Week
NEW YORK/TORONTO - Bitfarms Ltd. (NASDAQ/TSX:BITF), a cryptocurrency mining company that has seen its stock surge over 530% in the past six months according to InvestingPro data, has priced an offering of $500 million in convertible senior notes due 2031, the company announced Thursday. The offering, which carries a 1.375% interest rate, was increased from the previously announced size of $300 million.
The North American digital infrastructure company has granted initial purchasers an option to buy up to an additional $88 million in notes within a 13-day period. The offering is expected to close around October 21, 2025, subject to customary conditions including Toronto Stock Exchange approval.
The notes will be convertible at an initial rate of 145.6876 common shares per $1,000 principal amount, equivalent to approximately $6.86 per share, representing a 30% premium to Bitfarms’ closing price of $5.28 on Nasdaq on October 16. According to InvestingPro analysis, the stock is currently showing overbought signals, with technical indicators suggesting elevated volatility. The company maintains strong liquidity with a current ratio of 3.11, indicating solid short-term financial health.
In connection with the offering, Bitfarms entered into capped call transactions with financial institutions to reduce potential dilution upon conversion. The cap price is initially set at $11.88 per share, a 125% premium to the company’s last reported share price.
The notes will mature on January 15, 2031, unless earlier repurchased, redeemed or converted. Interest will be payable semi-annually beginning July 15, 2026.
Bitfarms intends to use the net proceeds for general corporate purposes, according to the press release statement. The notes and underlying shares have not been registered under the U.S. Securities Act and will be offered only to qualified institutional buyers.
The company operates vertically integrated data centers and energy infrastructure for high-performance computing and Bitcoin mining, with a 1.3 GW energy pipeline that is more than 80% U.S.-based. With revenue growth of 42% in the last twelve months and analysts expecting profitability this year, Bitfarms is among the 1,400+ companies covered by detailed InvestingPro Research Reports, offering investors comprehensive analysis of this rapidly evolving crypto mining sector.
In other recent news, Bitfarms Ltd. announced a $300 million convertible senior notes offering due in 2031, with an option for initial purchasers to buy an additional $60 million in notes. This offering is contingent on market conditions and regulatory approvals, including from the Toronto Stock Exchange. In another development, Bitfarms has secured a $300 million project-specific financing facility with Macquarie Group for its data center campus in Panther Creek, Pennsylvania. The company plans to draw an additional $50 million from this facility, totaling $100 million, to enhance equipment purchases and advance high-performance computing and artificial intelligence infrastructure at the site. H.C. Wainwright has reiterated its Buy rating and set a $4.00 price target for Bitfarms, citing the company’s expansion into HPC and AI data centers. Despite "underwhelming" second-quarter 2025 results, Bitfarms shares have shown resilience, outperforming Bitcoin as investors focus on its HPC/AI initiatives. These developments reflect Bitfarms’ strategic moves in the digital infrastructure and cryptocurrency mining sectors.
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