Canada has become a popular destination for bitcoin miners thanks to its combination of cheap, renewable hydroelectricity and hospitable cold weather. One of these miners is going to attract additional funds to increase the scale of production, strengthen its position in the region and increase competitiveness.
Backbone Hosting Solutions Inc., operating under the commercial brand Bitfarms, has signed an agreement with two Canadian investment banks, GMP Securities L.P. and Powerone Capital Markets Limited, to provide debentures in the amount of C$50,000,000 (approximately US$39 million). The proceeds will be used to expand the company's cryptocurrency trading following its upcoming merger with Blockchain Mining Ltd.
Bitfarms mines bitcoin, bitcoin cash, litecoin and dash at four different sites in Quebec. The company has been self-funded since its inception in 2013 and has over 200 shareholders.
Blockchain Mining Ltd. announced at the end of 2017 that it would merge with Bitfarms. Previously, the company invested in land and mineral assets - deposits of gold, silver, zinc and lead. Its share price jumped 1,300% after the company announced it would refocus its operations on bitcoin mining.
Blockchain Mining Ltd. and Bitfarms have applied for regulatory approval for the merger, which is currently under review. The company's audit is almost complete and the preliminary balance has already been provided by Canadian auditors Bitfarms. An EGM is scheduled for March 15 and, if a majority of shareholders vote in favor, the merger will be completed.
Emiliano Grodzki, Founder and CEO of Bitfarms, said: “Given our ambitious capital expenditure plans for 2018 and the demand from institutional investors in the sector, we have decided, together with our investment bankers, to raise funds to expand our operations. This involvement will allow us to increase the volume of our operations and help us remain leaders in the cryptocurrency mining market in North America. We will soon announce our plans to existing and future shareholders."
According to https://news.bitcoin.com
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