Bitfarms settles outstanding loan with BlockFi for $7.75M

Bitcoin (BTC) miner Bitfarms has settled its debt obligations with BlockFi, closing the chapter on its brief relationship with the bankrupt cryptocurrency lender. 

On Feb. 9, Bitfarms disclosed that it had settled its $21 million debt obligations with BlockFi for a single $7.75 million money cost. The settlement was reached weeks after Bitfarms warned that it’d default on its BlockFi mortgage.

“Mixed with the sooner restructuring and elimination of our capital expenditure obligations in December, this profitable negotiation and settlement furthers our initiatives to scale back indebtedness,” mentioned Jeff Lucas, Bitfarms’ chief monetary officer.

Bitfarms’ relationship with BlockFi facilities round Spine Mining Firm, its wholly owned subsidiary in Washington state. Spine Mining acquired a $32 million tools financing mortgage from BlockFi in February 2022. By Jan. 31, 2023, the excellent principal and curiosity on the mortgage totaled $21 million.

Following the settlement, all of Spine’s property, together with 6,100 miners, are unencumbered.

Cointelegraph reported on Jan. 13 that Bitfarms was searching for to change its mortgage settlement with BlockFi to acquire “extra favorable phrases” and scale back Spine Mining’s obligations. The unique mortgage facility was secured in opposition to Spine Mining’s property, together with its mining tools and a share of the Bitcoin its rigs produced. The property securing Spine Mining’s mortgage dropped considerably in the course of the bear market.

Associated: Blockstream raises $125M to finance expanded Bitcoin mining operations

BlockFi filed for Chapter 11 chapter on Nov. 28, mere weeks after the collapse of crypto alternate FTX. The lender acquired a $240 million rescue bundle from FTX US in July 2022, so its destiny was seemingly tied to the well being of Sam Bankman-Fried’s crypto empire.

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