Bitcoin miner Bitfarms upsizes debt offering to $500M to scale AI ambitions

Bitcoin mining company Bitfarms Ltd. has upsized its convertible note offering to $500 million as it plans to ramp up investment in artificial intelligence and high-performance computing infrastructure.The North American crypto miner initially proposed raising $300 million through convertible senior notes due in 2031, but expanded the offering to $500 million just a day later, according to a statement issued on October 16. Bitfarms also granted initial purchasers the option to buy an additional $88 million worth of notes within a 13-day window, potentially raising the total to $588 million if fully exercised. The offering is expected to close around October 21, pending approval from the Toronto Stock Exchange.According to the announcement, the convertible notes will accrue interest semi-annually beginning July 15, 2026, and mature on January 15, 2031. The notes are senior unsecured obligations that may be repurchased, redeemed, or converted under specified conditions.Investors will be able to convert the notes at an initial rate of 145.6876 common shares per $1,000 principal, implying a conversion price of approximately $6.86 per share, a 30% premium over the closing price on October 16.As part of the raise, the company also entered into capped call transactions with financial institutions to mitigate potential equity dilution from conversions.These privately negotiated instruments cover the number of shares underlying the notes, with a cap price of $11.88 per share, roughly 125% above Bitfarms’ market value at the time of pricing.Bitfarms intends to fund the capped call costs using proceeds from the offering or existing cash reserves.Bitfarms to scale AI infrastructureProceeds from the offering are primarily earmarked for corporate purposes as well as for scaling its infrastructure footprint for AI and high-performance computing workloads.According to the company, the offering is an “opportunistic capital raise,” as over the past year, Bitfarms has made significant progress in pivoting toward AI infrastructure.Earlier this year, it secured up to $300 million in private debt financing from Macquarie Equipment Capital to fund its Panther Creek data centre campus in Pennsylvania.Located less than 100 miles from both New York City and Philadelphia, the facility is expected to attract high-performance computing tenants and serve as a cornerstone of the company’s expansion into the AI and data centre market.At the time, Bitfarms had just completed its acquisition of Stronghold Digital Mining through a stock-for-stock merger, which added two power campuses in Pennsylvania to Bitfarms’ portfolio. Simultaneously, Bitfarms announced plans to exit the Argentine market to focus on its US expansion.The company has since submitted a master site plan for its Pennsylvania campus, with efforts now focused on building out the facility to accommodate large-scale AI workloads. Bitfarms operates over 461 megawatts of capacity and maintains a 1.3 gigawatt energy pipeline, more than 80% of which is based in the United States, putting it in a strong position to serve growing demand for AI computing.Bitfarms shares fallFollowing the announcement of the initial $300 million convertible note offering, Bitfarms’ stock fell sharply, dropping over 18% to close at $5.28 on Thursday.Even during this pullback, Bitfarm stocks remain significantly higher on longer timeframes. Bitfarms shares have surged more than 530% since April.Over the course of this year, Bitfarms has posted strong top-line growth despite margin pressures stemming from the April 2024 bitcoin halving. In the first quarter of 2025, revenue climbed 33% year-over-year to $67 million.Meanwhile, in the second quarter, Bitfarms reported revenue of $78 million, which marked an 87% gain from the same period in 2024.The post Bitcoin miner Bitfarms upsizes debt offering to $500M to scale AI ambitions appeared first on Invezz