North American Bitcoin mining firm Bitfarms Ltd. just made a major move to boost its capital. On Thursday, the Nasdaq and Toronto-listed company expanded its convertible senior notes offering from $300 million to $500 million, reflecting strong investor demand.
The offering includes 1.375% convertible senior notes due 2031, with initial purchasers holding an option to buy an additional $88 million within 13 days.
The notes will accrue interest semi-annually starting July 15, 2026, and mature on January 15, 2031. The initial conversion price is approximately $6.86 per share, representing a 30% premium over Bitfarms’ last closing price of $5.28.
The deal is expected to close around October 21, 2025, pending Toronto Stock Exchange approval.
How Bitfarms Plans to Use the Proceeds
Bitfarms intends to allocate funds for general corporate purposes and to finance capped call transactions designed to limit shareholder dilution. The company operates high-performance crypto mining facilities and energy infrastructure across North America, maintaining a 1.3 GW energy pipeline with over 80% of capacity in the U.S.
The expanded $500 million offering marks a 67% increase from the initial $300 million proposal announced just a day earlier.
Stock Performance & Market Context
Bitfarms’ stock (BIFT) closed down 18.4% at $5.28 on Thursday and declined another 5.3% in after-hours trading. Despite this dip, the stock is up 26.6% over the past five days and has surged 82.7% over the past month, reflecting the high volatility of the Bitcoin mining sector.
Why Convertible Notes Matter
The convertible notes structure allows holders to convert debt into equity at the predetermined conversion price, offering flexibility for both investors and the company.
The capped call transactions mentioned in the filing are designed to reduce potential shareholder dilution from note conversions. These financial instruments typically involve purchasing call options to offset the dilutive effect when debt is converted into equity.
Mining companies like Bitfarms are increasingly turning to convertible debt offerings to fund operations, expand capacity, and scale their infrastructure in a rapidly growing but volatile market.
The Bottom Line:
By expanding its offering to $500 million, Bitfarms is positioning itself to fuel growth, strengthen its balance sheet, and continue scaling its North American crypto mining operations.
The convertible notes structure, combined with capped calls, gives the company financial flexibility while protecting shareholders, signaling strategic planning in a sector defined by volatility and opportunity.
