Bitcoin (BTC) miner Bitfarms has settled its debt obligations with BlockFi, closing the chapter on its quick relationship with the bankrupt cryptocurrency lender.
On Feb. 9, Bitfarms disclosed that it had settled its $21 million debt obligations with BlockFi for a single $7.75 million money cost. The settlement was reached weeks after Bitfarms warned that it would default on its BlockFi mortgage.
“Mixed with the sooner restructuring and elimination of our capital expenditure obligations in December, this profitable negotiation and settlement furthers our initiatives to cut back indebtedness,” stated Jeff Lucas, Bitfarms’ chief monetary officer.
Bitfarms’ relationship with BlockFi facilities round Spine Mining Firm, its wholly owned subsidiary in Washington state. Spine Mining acquired a $32 million tools financing mortgage from BlockFi in February 2022. By Jan. 31, 2023, the excellent principal and curiosity on the mortgage totaled $21 million.
#Bitfarms has modified its mortgage settlement with BlockFi Lending LLC (Blockfi), to settle all excellent principal and curiosity due totaling $21 million for a single money cost of $7.75 million.
Press Launch: https://t.co/QBD84U5NwA pic.twitter.com/x9Ahug7Nkp
— Bitfarms (@Bitfarms_io) February 9, 2023
Following the settlement, all of Spine’s property, together with 6,100 miners, are unencumbered.
Cointelegraph reported on Jan. 13 that Bitfarms was looking for to switch its mortgage settlement with BlockFi to acquire “extra favorable phrases” and scale back Spine Mining’s obligations. The unique mortgage facility was secured towards Spine Mining’s property, together with its mining tools and a proportion of the Bitcoin its rigs produced. The property securing Spine Mining’s mortgage dropped considerably in the course of the bear market.
Associated: Blockstream raises $125M to finance expanded Bitcoin mining operations
BlockFi filed for Chapter 11 chapter on Nov. 28, mere weeks after the collapse of crypto trade FTX. The lender acquired a $240 million rescue package deal from FTX US in July 2022, so its destiny was seemingly tied to the well being of Sam Bankman-Fried’s crypto empire.
