Bitfarms (BITF) stock price is down 4% premarket as the company announced a proposed offering of $300 million of convertible senior notes due January 15, 2031, with an option for initial purchasers to purchase an additional $60 million within 13 days of issuance.
The notes, senior unsecured obligations, will pay interest semi-annually beginning July 15, 2026 and may be converted into cash, common stock or a combination of the two, at the company’s option.
Conversion will be restricted before October 15, 2030, under certain conditions. Proceeds will be used for general corporate purposes and to fund capped call transactions designed to offset dilution of up to 125% of Bitfarms’ stock price at the price.
Bitfarms shares have surged 315% year-to-date and 400% since early September due to the business model pivot toward AI infrastructure.
