Bitfarms Pays Off $21M Debt With $7.75M Cash Payment

Bitfarms Settles $21M Debt with BlockFi

• Crypto miner Bitfarms has settled a $21 million debt owed to bankrupt crypto lender BlockFi with a one-time cash payment of $7.75 million
• The loan repayment freed up over 6000 Bitcoin mining machines Bitfarm had used as collateral
• The original loan was for $32 million offered by BlockFi on Feb. 18, 2022

Bitfarms Reduces Debt Obligations

Crypto miner Bitfarms recently settled a debt owed to defunct crypto lender BlockFi in the amount of $21 million with a one-time cash payment of $7.75 million. This move has enabled the company to reduce their debt obligations from $165 million in June 2022 down to just $25 million, representing an 85% decrease in less than nine months. Furthermore, the loan repayment also freed up 6,100 miners which had been used as collateral for the loan.

Background On Loan Repayment

The original loan was a $32 million equipment finance facility offered by BlockFi on February 18th, 2022. Following this agreement between Bitfarms and BlockFi, it was decided that the outstanding principal and interest would be paid off in one transaction as part of restructuring the debt. In addition to reducing their financial obligations substantially, this move also enabled them to free up significant resources for other operations and investments.

Implications Of Loan Repayment

The successful negotiation and settlement of this loan repayment is indicative of Bitfarm’s commitment towards reducing their indebtedness and increasing financial flexibility in line with today’s market conditions. It is also important to note that this settlement is not only beneficial for Bitfarms but other crypto miners as well since it sets an example for how such debts can be managedeffectivelyand efficiently through negotiations and restructuring agreements.


In conclusion, this successful negotiation between Bitfarms and BlockFi serves as evidence that crypto miners can manage their debts effectively even when faced with difficult conditions like bankruptcy or defaulted loans. Moreover, it highlights just how important it is for companies operating within the cryptocurrency industry to maintain good relations with lenders so they can access financing when needed while still being able to pay back any loans taken out on favorable terms.