Bitcoin miner Bitfarms (BITF) is seeking to modify a $20 million mortgage from bankrupt crypto lender BlockFi, the agency mentioned in a press launch on Friday.
Bitfarms might need already or might sooner or later cease making instalment funds, successfully defaulting on the mortgage, thereby risking that BlockFi workouts its rights the collateral.
The mortgage for $32 million was signed in February 2022 by Spine Mining Options, a Bitfarms firm which operates a 20 megawatt (MW) mining web site in Washington state.
The mortgage now has $20 million excellent, and is secured by solely $5 million in belongings, within the type of some mining machines and the bitcoin they produce. So, the miner is in search of extra favorable phrases on the mortgage and decreasing its obligations.
“Neither a restructuring on extra useful mortgage phrases nor a discount in BMS’s indebtedness is assured,” the Friday press launch mentioned.
Canada-based Bitfarms has been working to cut back its loans, however nonetheless has $47 million excellent, together with the mortgage with BlockFi.
Miners have been haunted by their heavy debt obligations in a bear market that has seen the worth of their collateral, often crypto belongings and mining machines, plummet. Among the greatest companies within the trade, Compute North and Core Scientific (CORZ) have filed for Chapter 11 chapter safety.
As of the top of 2022, Bitfarms had $36 million in money and unencumbered crypto.
The inventory is down over 5% at 95 cents in pre-market buying and selling.
Learn extra: Crypto Miners Face Margin Calls, Defaults as Debt Comes Due in Bear Market
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