Crypto miner Bitfarms has settled a $21 million debt owed to bankrupt crypto lender BlockFi with a one-time money fee of $7.75 million, in keeping with a Feb. 9 press statement.
Bitfarm agreed with BlockFi to restructure the debt and repay the excellent principal and curiosity in a single transaction.
The unique mortgage is a $32 million gear finance facility provided by BlockFi on Feb. 18, 2022. With the mortgage reimbursement, Bitfarms’ 6,100 miners’ collateral for the mortgage is now unencumbered.
Bitfarms stated the mortgage fee additional reduces its debt obligations from $165 million in June 2022 to $25 million, representing an 85% lower in lower than 9 months.
Bitfarms chief monetary officer Jeff Lucas stated:
“This profitable negotiation and settlement furthers our initiatives to cut back indebtedness, improve liquidity and improve monetary flexibility consistent with at present’s market circumstances.”
BlockFi was one of the distinguished financiers for crypto miners in 2021 and 2022, nevertheless it now has a number of bad debts. Bloomberg reported that the agency was seeking to promote $160 million in loans to miners.