TLDR
- Bitfarms stock rose 16.3% after converting its $300 million Macquarie debt facility into project-specific financing for its Pennsylvania data center
- The company drew an additional $50 million, bringing total facility draw to $100 million for equipment purchases and AI infrastructure development
- Funds will support civil works and substation construction at Panther Creek campus starting Q4 2025
- Macquarie Managing Director Joshua Stevens called Pennsylvania an emerging AI infrastructure hub with strong energy and fiber infrastructure
- Northland Capital Markets served as sole placement agent with Skadden and Latham & Watkins providing legal counsel
Bitfarms Ltd. stock climbed 16.3% on Friday following the company’s announcement about restructuring its debt facility. The North American energy and digital infrastructure company converted its $300 million private debt facility from Macquarie Group into project-specific financing.
The converted facility targets the company’s Panther Creek, Pennsylvania data center campus. This restructuring allows Bitfarms to access the full facility amount for the specific project.
Bitfarms plans to draw an additional $50 million from the facility. This brings the total amount drawn to $100 million.
The company will use these funds to purchase long-lead time equipment. The money also supports high-performance computing and artificial intelligence development at the Pennsylvania location.
CEO Ben Gagnon stated the conversion to project-level financing opens access to the full facility. This accelerates construction timelines at the site.
Gagnon said the move positions Bitfarms to capitalize on demand for HPC and AI infrastructure in Pennsylvania. The state is becoming a key location for this type of development.
Facility Details and Construction Timeline
The additional $50 million will fund civil works at Panther Creek. It will also support substation construction at the campus.
Construction activities are scheduled to begin in the fourth quarter of 2025. This timeline represents an acceleration from previous plans.
Joshua Stevens, Managing Director at Macquarie Group’s Commodities and Global Markets business, commented on Pennsylvania’s emergence. He called the state a new AI infrastructure hub.
Stevens pointed to Pennsylvania’s energy infrastructure as a key advantage. The state also has strong fiber infrastructure.
He said these factors position Bitfarms to deliver state-of-the-art digital infrastructure. Stevens described Pennsylvania as the premier HPC and AI data center hub in the United States.
Transaction Structure and Advisors
Northland Capital Markets acted as the sole placement agent for the transaction. The firm handled the conversion process between Bitfarms and Macquarie.
Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Bitfarms. Latham & Watkins LLP represented Macquarie in the transaction.
The stock has posted a year-to-date price performance of 159.01%. Average trading volume stands at 55 million shares.
The company’s current market capitalization reaches $2.2 billion. Technical sentiment signals indicate a buy rating.
Analysts noted strong technical momentum in the stock. They also pointed to revenue growth as a positive factor.
However, concerns remain about valuation levels. Questions about financial performance persist among some observers.
The conversion allows Bitfarms to focus the debt facility on a specific project rather than general corporate use. This structure typically provides more flexibility for infrastructure development.
