Bitfarms closes $588 million convertible notes, bolsters AI firepower

Core Points - Bitfarms Ltd. has successfully closed an upsized offering of $588 million in 1.375% convertible senior notes due 2031, including an $88 million option exercised by initial purchasers [1] - The notes have a conversion rate of 145.6876 common shares per $1,000 principal amount, translating to a conversion price of approximately $6.86 per share, which is about a 30% premium over BITF's closing price of $5.28 on October 16 [2] - The net proceeds of around $568 million will be allocated for general corporate purposes, and the company has utilized cash on hand to purchase capped calls to limit economic dilution upon conversion [3] Financial Strategy - The capped calls are initially set at $11.88 per share, representing a 125% premium, aimed at mitigating dilution effects [3] - Bitfarms has converted a $300 million credit facility with Macquarie into a project-specific loan associated with Panther Creek [4] Market Reaction - At the time of publication, BITF shares experienced a decline of 7.5% during pre-market hours [5]