Cryptocurrency miner Bitfarms has settled $21 million in debt owed to bankrupt crypto lender BlockFi in a one-time payment of $7.75 million in cash, according to a February 9 report. statement.
Bitfarm has agreed with BlockFi to restructure its debt and repay outstanding principal and interest in a single transaction.
The original loan is a $32 million equipment financing facility provided by BlockFi on February 18, 2022. With the repayment of the loan, Bitfarms’ collateral for his loan of 6,100 miners is now free.
According to Bitfarms, the loan payments further reduced the debt from $165 million in June 2022 to $25 million, an 85% drop in less than nine months.
Bitfarm Chief Financial Officer Jeff Lucas said:
“The success of this negotiation and settlement furthers our initiatives to reduce debt, increase liquidity and increase financial flexibility in line with today’s market conditions.”
BlockFi was one of the most prominent investors for crypto miners in 2021 and 2022, but now has some bad debt. bloomberg report The company was looking to sell a $160 million loan to miners.
