Bitfarms repay $21M debt with one-time money cost of $7.75M

Crypto miner Bitfarms has settled a $21 million debt owed to bankrupt crypto lender BlockFi with a one-time money cost of $7.75 million, in response to a Feb. 9 press assertion.

Bitfarm agreed with BlockFi to restructure the debt and repay the excellent principal and curiosity in a single transaction.

The unique mortgage is a $32 million tools finance facility supplied by BlockFi on Feb. 18, 2022. With the mortgage reimbursement, Bitfarms’ 6,100 miners’ collateral for the mortgage is now unencumbered.

Bitfarms stated the mortgage cost additional reduces its debt obligations from $165 million in June 2022 to $25 million, representing an 85% lower in lower than 9 months.

Bitfarms chief monetary officer Jeff Lucas stated:

“This profitable negotiation and settlement furthers our initiatives to cut back indebtedness, improve liquidity and enhance monetary flexibility according to as we speak’s market circumstances.”

BlockFi was one of the outstanding financiers for crypto miners in 2021 and 2022, however it now has a number of unhealthy money owed. Bloomberg reported that the agency was trying to promote $160 million in loans to miners.