Bitcoin miner Bitfarms Ltd.’s decision to significantly expand a convertible bond offering to USD $500 million sent its shares sharply lower on Thursday, despite the company outlining ambitious plans for growth.
The Canadian-U.S. firm’s stock (BIFT) plunged 18.4% to close at USD $5.28 on Thursday, according to Yahoo Finance data, with an additional 5.3% drop in extended trading. The market reaction followed Bitfarms’ announcement that it increased the offering by more than 60% from an initial proposal of USD $300 million.
The bonds, set to mature in January 2031, will carry an annual interest rate of 1.375%, with semi-annual payments beginning July 15, 2026. Initial purchasers also have an option to acquire an additional USD $88 million in bonds within 13 days.
Bitfarms stated the funds would be used for general corporate purposes and to finance “capped call” transactions. This strategy is designed to limit share dilution if the bonds are converted into stock in the future.
The conversion price for the bonds is set at approximately USD $6.86 per share. This represents a 30% premium over Bitfarms’ closing share price on Thursday.
The company, listed on both the Nasdaq and the Toronto Stock Exchange, expects the transaction to close by October 21, 2025, pending Toronto Stock Exchange approval.
Bitfarms emphasized that the moves aim to strengthen its balance sheet and optimize capital structure. It also intends to continue expanding its mining infrastructure and high-performance computing (HPC) operations across North America.
The company currently operates a network of crypto mining and intensive computing energy centers in multiple U.S. states and Canada. It is developing a 1.3 gigawatt (GW) energy portfolio, with more than 80% located in the United States.
Bitfarms has also been diversifying into HPC services, a segment with increasing demand from the artificial intelligence and financial technology sectors.
Despite the recent share drop, analysts noted that the stock had shown significant gains prior to the announcement, rising 26.6% over the last five days and 82.7% over the past month. This reflects ongoing market optimism about Bitfarms’ ability to fund its growth amidst favorable conditions for Bitcoin mining and intensive computing.
The financing initiative comes as numerous public Bitcoin mining companies are tapping debt markets. This strategy aims to expand their hash capacity and secure positions ahead of future Bitcoin price cycles.
Low-cost financing is critical for large-scale operations, particularly following the recent halving event which reduced Bitcoin block rewards by half. Bitfarms, alongside competitors such as Marathon Digital and Riot Platforms, has intensified its growth strategy in North America. The region offers more predictable regulatory and energy environments compared to other global areas.