Bitfarms Stock Falls As Convertible Notes Swell To $500 Million

Bitfarms Ltd. BITF shares extended their decline Friday after the company boosted its convertible notes offering to $500 million, expanding a deal announced a day earlier that had already pressured the stock.

The move underscores investor interest in the company's debt despite recent turbulence in the Bitcoin mining sector.

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The new issue consists of $500 million in 1.375% convertible senior notes due 2031, with an option for initial buyers to purchase up to an additional $88 million, bringing the potential total to $588 million. The transaction is expected to close around Oct. 21, subject to standard approvals.

The notes carry an annual interest rate of 1.375%, payable semiannually starting in July 2026, and mature on Jan. 15, 2031. Holders can convert the notes into Bitfarms stock at a rate of roughly 145.69 shares per $1,000 of principal, equal to a conversion price of about $6.86 per share — representing a 30% premium to Thursday's Nasdaq close of $5.28.

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Proceeds from the offering will fund general corporate purposes and the purchase of capped call transactions aimed at limiting potential dilution. Those capped calls are initially set at $11.88 per share, or 125% above the stock's last closing price.

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The company said banks and financial institutions facilitating the capped calls may engage in hedging or derivative transactions involving Bitfarms shares, which could add to near-term volatility.

Shares have come under sustained pressure this week as investors weigh the impact of the capital raise on existing equity holders. Bitfarms, which operates energy-efficient data centers across North America, continues to expand its infrastructure for high-performance computing and Bitcoin mining.

The stock has a 52-week high of $6.60 and a low of 67 cents. It remains up about 231% year-to-date and trades roughly 118% above its 50-day simple moving average, reflecting strong momentum in tandem with Bitcoin's rebound this year.

BITF Price Action: Bitfarms shares are trading 6.63% lower at $4.93 at publication on Friday.