Bitcoin Mining Firm Bitfarms Settles $27 Million in Debt
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Bitfarms to Reduce Debt
The business reduced the outstanding value of a bitcoin-backed credit facility, perhaps the one agreed to with NYDIG in June, by $15 million, bringing it down to $23 million, and slashing interest expenses by an annualized $2 million. The business stated on Monday that it also changed the collateral agreement to release $5 million in bitcoin and delayed the maturity date to December 29. The miner repaid $12 million in term loan secured by the equipment.
Cash flow and debt commitments have become the principal drivers of miners' survival as a result of the shrinking profit margins caused by bitcoin's dropping value. Several large companies, including Core Scientific (CORZ) and Argo Blockchain (ARBK), have disclosed that they are experiencing liquidity issues.
Anticipations by Bitcoin Mining Firm
By the end of the year, Bitfarms anticipates receiving another $3.5 million in cash from the sale of a bitcoin mining facility after raising $15 million through an at-the-market stock program since the beginning of the third quarter.
The cost of manufacturing one bitcoin in cash was reduced by the corporation from $17,000 in the 2nd quarter to $14,300 in the third. It revealed an $85 million net loss for the quarter, and its profit margin decreased to 52%.