Bitcoin mining company Bitfarms submits a $300 million convertible bond issuance application

ChainCatcher news, Bitcoin mining and digital infrastructure company Bitfarms Ltd. is planning to issue a batch of convertible bonds to raise $300 million. These convertible bonds can be converted into cash, common stock of the company, or a combination of both at Bitfarms' option.

The bonds are unsecured, maturing in 2031, and will pay interest semi-annually starting from July 2026. Bitfarms stated that the raised funds will be used for general corporate purposes, including "capped option trading" to hedge against equity dilution from the bond conversion. The company plans to reach private agreements with some bond purchasers to cap dilution at a premium level of approximately 125% of the current stock price.