Home / Blockchain / Debt May Be a Double-Edged Sword for Bitcoin Miner Bitfarms

Debt May Be a Double-Edged Sword for Bitcoin Miner Bitfarms

Industrial-scale bitcoin mining is an extremely capital-intensive business. Debt financing can be an attractive way to raise the funds needed to purchase equipment without diluting ownership through equity issuance. But the mining industry is volatile and loans generally carry high interest rates and strict collateral requirements, making it a double-edged sword for those that borrow to expand. Case in point: Canadian bitcoin miner Bitfarms.

CoinDesk Research presents an in-depth look into Bitfarms. With over 29,000 ASIC miners spread across five facilities, Bitfarms is one of Canada’s largest bitcoin mining companies. Throughout 2019, the company quickly grew its overall hashrate, which was financed primarily through a $20 million loan from Dominion Capital. In this report, we examine Bitfarms’ financial position and evaluate its ability to pay down debt coming due in 2021.

Read the full report here.

UPDATE (July 28, 03:00 UTC): The last bullet point of this article and the format were modified to make clear it expresses the analyst’s opinion.


The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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