Bitfarms Shares Decline as Convertible Notes Reach $500 Million

Bitfarms Convertible Notes Offering: Bitfarms Ltd. has increased its convertible notes offering to $500 million, which has contributed to a decline in its stock price as investors react to the capital raise amidst challenges in the Bitcoin mining sector.

Details of the Offering: The offering includes 1.375% convertible senior notes due 2031, with a conversion price of approximately $6.86 per share, and proceeds will be used for corporate purposes and capped call transactions to limit dilution.

Stock Performance: Bitfarms shares are currently trading at $4.93, down 6.63%, but remain up 231% year-to-date, reflecting strong momentum alongside Bitcoin's recovery.

Market Impact: The capital raise has raised concerns among existing equity holders, and the involvement of banks in hedging transactions may lead to increased volatility in the near term.