Bitfarms (NASDAQ:BITF) announced on Wednesday an offering of US$300M aggregate principal amount of convertible senior notes due 2031.
The company would grant the initial purchasers an additional US$60M aggregate principal amount of the convertible notes.
The notes will be convertible into a combination of cash and common shares of the company. The initial conversion rate, interest rate, and other terms will be determined at the time of pricing.
The net proceeds from the offering will be used for general corporate purposes. Additionally, the company intends to use either net proceeds from this offering or cash on hand to pay the cost of the capped call transactions.
The cash-settled capped calls are expected generally to reduce potential economic dilution up to a targeted cap of 125% premium to the last reported sale price of the company’s common shares on the date of pricing.
