USA Bitfarms, one of the largest and most productive publicly listed bitcoin mining operations in the world has closed its previously announced private placement of equity securities known as the “Offering”. The Offering was for gross proceeds of approximately CAD$20 million and consisted of the sale of 5,586,593 common shares, along with warrants to purchase an aggregate of up to 5,586,593 common shares, at a purchase price of CAD$3.58 per common share and associated warrant. The warrants have an exercise price of USD$3.10 per common share and exercise period of three and one-half years (through July 15, 2024). The funds were raised via a fully subscribed private placement of units among U.S. institutional investors.
H.C. Wainwright & Co. acted as the exclusive placement agent for the Offering. The net proceeds of the Offering will be used by the Company principally to acquire additional miners, expand infrastructure, and improve its working capital position.
H.C. Wainwright & Co. received (i) a cash commission equal to 8.0% of the gross proceeds of the Offering and (ii) 446,927 non-transferable broker warrants (the “Broker Warrants”). Each Broker Warrant will entitle the holder to purchase one common share at an exercise price of USD$3.53 at any time on or before July 15, 2024. The securities issued under the Offering are subject to customary resale restrictions in the United States with no resale restrictions in Canada.