Bitfarms settles outstanding loan with BlockFi for $7.75M

Bitcoin (BTC) miner Bitfarms has settled its indebtedness obligations with BlockFi, closing the section connected its abbreviated narration with the bankrupt cryptocurrency lender. 

On Feb. 9, Bitfarms disclosed that it had settled its $21 cardinal indebtedness obligations with BlockFi for a azygous $7.75 cardinal currency payment. The colony was reached weeks aft Bitfarms warned that it mightiness default connected its BlockFi loan.

“Combined with the earlier restructuring and elimination of our superior expenditure obligations successful December, this palmy dialog and colony furthers our initiatives to trim indebtedness,” said Jeff Lucas, Bitfarms’ main fiscal officer.

Bitfarms’ narration with BlockFi centers astir Backbone Mining Company, its wholly owned subsidiary successful Washington state. Backbone Mining received a $32 cardinal instrumentality financing indebtedness from BlockFi successful February 2022. By Jan. 31, 2023, the outstanding main and involvement connected the indebtedness totaled $21 million.

Following the settlement, each of Backbone’s assets, including 6,100 miners, are unencumbered.

Cointelegraph reported connected Jan. 13 that Bitfarms was seeking to modify its indebtedness agreement with BlockFi to get “more favorable terms” and trim Backbone Mining’s obligations. The archetypal indebtedness installation was secured against Backbone Mining’s assets, including its mining instrumentality and a percent of the Bitcoin its rigs produced. The assets securing Backbone Mining’s indebtedness dropped importantly during the carnivore market.

Related: Blockstream raises $125M to concern expanded Bitcoin mining operations

BlockFi filed for Chapter 11 bankruptcy connected Nov. 28, specified weeks aft the illness of crypto speech FTX. The lender received a $240 cardinal rescue package from FTX US successful July 2022, truthful its destiny was seemingly tied to the wellness of Sam Bankman-Fried’s crypto empire.