Bitfarms seeks to modify Washington state debt facility

Bitfarms ( NASDAQ: BITF ) is looking to reduce indebtedness at one of its wholly-owned corporate subsidiaries. "During 2022, Bitfarms began taking proactive actions to increase financial flexibility and to reduce indebtedness and capital expenditure obligations. Considering today’s challenging market conditions, we are seeking to modify our Washington state debt facility to achieve terms that are better aligned with the market outlook and our business strategy," said CFO Jeff Lucas. Bitfarms and its subsidiaries have ~$47M of outstanding indebtedness, including ~$20M indebtedness under the BlockFi loan secured by Backbone Mining Solutions (BMS) subsidiary last year. The current market value of the assets securing the loan is estimated to be ~$5M, while the outstanding principal and interest is ~$20M. As a result, Bitfarms ( BITF ) is seeking more favorable terms from BlockFi and potentially take other steps to reduce the BMS obligations. It has taken certain actions, and may in the future take other actions, including not making installment payments, that constitute defaults under the loan agreement and entitle BlockFi to exercise various rights and remedies against BMS and in respect of the collateral. A restructuring on more beneficial loan terms nor a reduction in BMS’s indebtedness is assured.