Street Calls of the Week
Investing.com -- Bitfarms Ltd. (NASDAQ:BITF) stock fell 5% Wednesday after the cryptocurrency mining company announced plans to offer $300 million in convertible senior notes due 2031.
The North American energy and digital infrastructure company said it intends to grant initial purchasers an option to buy up to an additional $60 million in notes during a 13-day period. The offering is subject to market conditions and regulatory approvals, including from the Toronto Stock Exchange.
The convertible notes will be senior unsecured obligations with interest payable semi-annually beginning July 15, 2026. The notes will mature on January 15, 2031, unless earlier repurchased, redeemed, or converted. Prior to October 15, 2030, the notes will be convertible only under specific conditions, and thereafter at any time until two trading days before maturity.
Bitfarms plans to use the net proceeds for general corporate purposes. The company also intends to enter into privately negotiated capped call transactions with initial purchasers or other financial institutions, which are expected to reduce potential dilution upon conversion of the notes.
The notes and underlying common shares have not been registered under the U.S. Securities Act of 1933 and will be offered only to "qualified institutional buyers." The company will rely on exemptions available to eligible interlisted issuers under Toronto Stock Exchange rules for the offering.
Bitfarms operates cryptocurrency mining facilities across North America, focusing on Bitcoin mining operations.
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