Bitfarms Falls Pre-Market After Announcing $300M Convertible Note Offering Amid AI-Fueled Rally
Shares of Bitfarms (BITF) dropped about 4% in pre-market trading on Thursday after the company revealed plans to raise $300 million through the sale of convertible senior notes due January 15, 2031. The offering also allows initial purchasers to acquire up to an additional $60 million in notes within 13 days of issuance.
The senior unsecured notes will bear interest semi-annually beginning July 15, 2026, and may be converted into cash, common stock, or a combination of both, at the company’s discretion. Conversion rights will generally be restricted until October 15, 2030, except under specific conditions.
Bitfarms plans to use the proceeds for general corporate purposes and to fund capped call transactions designed to limit potential dilution up to 125% of its share price at the time of pricing.
Despite Thursday’s decline, Bitfarms shares have surged over 315% year to date and more than 400% since early September, driven by the company’s aggressive pivot into artificial intelligence (AI) and high-performance computing (HPC) infrastructure.
