Mining Company Bitfarms Closed Loan Debt

Canadian-based cryptocurrency mining company Bitfarms has drastically reduced its debt obligations over the past 8 months. Bitfarms, one of the country’s largest Bitcoin mining startups, has cut its relationship by closing its burden on the crypto debt platform BlockFi, which went bankrupt last year.

“#Bitfarms has modified its loan agreement with BlockFi Lending LLC (Blockfi), to settle all outstanding principal and interest due totaling $21 million for a single cash payment of $7.75 million.”

Bitarms officials announced on February 9, 2023 that they closed the $21 million loan with BlockFi by paying $7.75 million in cash instantly. In the past weeks, it was claimed that Bitfarms would be in default by failing to pay its debts. Bitfarms manager Jeff Lucas made the following statement after the payment agreement:

“Our idea of reducing our capital liabilities by restructuring in December, the successful negotiation and settlement with BlockFi shows that our debt reduction initiatives are progressing.”

The Bitcoin mining company’s relationship with crypto lender BlockFi began with its subsidiary company Backbone Mining, which operates in the US. Backbone Mining received a $32 million loan for equipment from BlockFi exactly one year ago. Despite the difficult market conditions, the company has reduced its debt to $21 million to date, although not as much as expected. It seems that many companies that are about to go bankrupt, especially with the rise in crypto money prices, have survived this situation. This is a very positive situation for the industry.

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