Bitcoin miner Birfarms settled $21 million in debt from BlockFi with a single payment of $7.75 million in cash.
The value of mining machines that collateralize those loans has dropped significantly and the bankrupt crypto lender has reportedly been looking to sell around $160 million in debt.
Like many miners, Bitfarms has been making efforts to deleverage itself for the past few months, bringing down its debt from a high of $165 million in June to $25 million now.
“Our remaining debt, mostly secured by new, high efficiency mining equipment in Quebec, matures on or before February 2024, enabling us to be debt free before the next halving event expected in May 2024," said Bitfarms CFO Jeff Lucas.
The deal also unemcumbered 6,100 miners belonging to its subsidiary, Backbone Mining Solutions, Inc — the entity that actually entered into the BlockFi loan, originally $32 million, and that operates Bitfarms’ 20-megawatt sites in Washington state.
"This successful negotiation and settlement furthers our initiatives to reduce indebtedness, enhance liquidity and increase financial flexibility in line with today’s market conditions,” Lucas said.
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