UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2022
Commission File Number: 001-40370
BITFARMS LTÉE
(Exact Name of Registrant as Specified in Its Charter)
18 King Street East, Suite 902, Toronto, Ontario, Canada M5C 1C4
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
INCORPORATION BY REFERENCE
On February 25, 2022, the Registrant filed with the Canadian Securities Regulatory Authorities on the System for Electronic Data Analysis and Retrieval (SEDAR) a material change report that includes a copy of a press release, a copy of which is attached hereto as Exhibit 99.1, and which is incorporated by reference to the Company’s Registration Statement on Form F-10 (File No. 333-258788).
| Exhibits | |
| Exhibit No. | Description |
| 99.1 | Material Change Report dated February 25, 2022 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BITFARMS LTÉE | |||
| Par : | /s/ L. Geoffrey Morphy | ||
| Name: | L. Geoffrey Morphy | ||
| Title: | President | ||
Date: February 25, 2022
Exhibit 99.1
FORM 51-102F3
MATERIAL CHANGE REPORT
| Item 1 | Name and Address of Company |
Bitfarms Ltd. (“Bitfarms” or the “Company”)
18 King Street East, Suite 902
Toronto, Ontario M5C 1C4
| Item 2 | Date of Material Change |
February 25, 2022.
| Item 3 | News Release |
The press release attached as Schedule “A” was released on February 25, 2022 by a newswire company in Canada.
| Item 4 | Summary of Material Change |
The material change is described in the press release attached as Schedule “A”.
| Item 5 | Full Description of Material Change |
The material change is described in the press release attached as Schedule “A”.
| Item 6 | Reliance of subsection 7.1(2) of National Instrument 51-102 |
Not applicable.
| Item 7 | Omitted Information |
Not applicable.
| Item 8 | Executive Officer |
Nicolas Bonta
Executive Chairman & Director
Bitfarms ltée
nbonta@bitfarms.com
Item 9 Date of Report
February 25, 2022.
Schedule “A”
Bitfarms conclut un accord de financement d'équipement d'un montant de 32 millions de dollars
- Adds Another Source of Non-dilutive Capital -
Le présent communiqué de presse constitue un « communiqué de presse désigné » aux fins du supplément de prospectus de la Société daté du 16 août 2021 à son prospectus simplifié de base daté du 12 août 2021.
Toronto, Ontario and Brossard, Québec (February 25, 2022) - Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a global Bitcoin self-mining company, entered into a $32 million equipment financing agreement.
« Cet accord de financement d'équipement constitue une autre source de capital non dilutif, nous permettant de financer l'équipement de nos opérations de minage établies afin que nous puissions investir du capital de croissance dans l'achat de mineurs et dans nos nouvelles fermes en construction », a déclaré Jeff Lucas, directeur financier de Bitfarms. « Les achats de mineurs de bitcoins (BTC) constituant la majorité de nos besoins en capitaux, ce financement d'équipement de 32 millions de dollars libère le fonds de roulement et soutient nos options de financement flexibles et sans recours, qui comprennent également notre facilité de prêt garanti de 100 millions de dollars en BTC annoncée récemment. »
Selon les termes de l'accord de financement, la Société a conclu un prêt d'équipement pour l'achat récent de 6 100 Bitmain S19j Pros pour un montant total de 32 millions de dollars US. Le prêt a une durée de deux ans et un taux d'intérêt de 14,5 %.
The financing was provided by BlockFi Lending LLC. "We are pleased to partner with Bitfarms on this transaction. Our goal is to support our client's working capital needs and provide them with financial leverage for future growth,” said Patrick Guerriero, Director of Miner Finance at BlockFi.
À propos de Bitfarms ltée
Fondée en 2017, Bitfarms est une entreprise mondiale d’auto-minage de Bitcoin, gérant des activités de minage verticalement intégrées avec des réparations techniques sur place, des analyses de données propriétaires et des services de génie électrique et d'installation propres à l'entreprise, afin d'optimiser les performances opérationnelles et le temps de fonctionnement.
Ayant fait preuve d'une croissance rapide et d'un fonctionnement irréprochable, Bitfarms est devenue la première société de minage de bitcoins à remplir son prospectus simplifié auprès de la Commission des valeurs mobilières de l'Ontario et a commencé à négocier sur le TSX-V en juillet 2019. Le 24 février 2021, Bitfarms a eu l'honneur d'être annoncé comme une étoile montante par le TSX-V. Le 21 juin 2021, Bitfarms est entrée sur le marché boursier Nasdaq. Le 24 février 2022, la Société a été honorée par le TSX-V en tant que Venture 50 et s'est classée première dans le secteur de la technologie.
Bitfarms dispose d'une plateforme de production diversifiée avec cinq installations industrielles situées au Québec, une dans l'État de Washington et une au Paraguay. Chaque installation est alimentée à plus de 99 % par de l'énergie hydraulique respectueuse de l'environnement et garantie par des contrats d'électricité à long terme. Bitfarms est actuellement la seule Société de minage pure « pure play » cotée en bourse et auditée par un cabinet comptable de type Big Four.
Pour en savoir plus sur les événements, les développements et les communautés en ligne de Bitfarms :
Website: www.bitfarms.com
https://www.facebook.com/BitfarmsFR/
https://twitter.com/bitfarms_fr
https://www.instagram.com/bitfarms_fr/
https://www.linkedin.com/company/bitfarms-fr
À propos de BlockFi Lending LLC
BlockFi is a crypto-financial services company focused on harnessing the power of cryptocurrencies and blockchain payment rails to create a globally accessible, crypto wealth management platform. At BlockFi, we provide clients with broad access to a suite of financial products and services, including crypto-backed loans, interest-bearing accounts to store crypto assets, and the world’s first crypto rewards credit card. Founded in 2017 by Zac Prince & Flori Marquez, BlockFi is one of the fastest-growing private fintech companies in the world currently valued at $4.5 billion USD. Headquartered in Jersey City, NJ, we serve over 1 million verified clients and 350 global financial institutions with approximately $10 billion USD in assets under management. BlockFi’s mission has always been to bridge traditional and crypto-based financial products, and at the heart of those efforts has been a focus on educating consumers about their benefits and how to grow their wealth in crypto.
Mise en garde
Le commerce des titres de la Société doit être considéré comme hautement spéculatif. Aucune bourse, commission des valeurs mobilières ou autre autorité réglementaire n'a approuvé ou désapprouvé les informations contenues dans le présent document. Ni la Bourse de croissance TSX, ni son fournisseur de services de réglementation (tel que ce terme est défini dans les politiques de la Bourse de croissance TSX), ni le Nasdaq, ni aucune autre bourse de valeurs ou autorité de réglementation n'acceptent de responsabilité quant à la pertinence ou à l'exactitude du présent communiqué.
Énoncés prévisionnels
This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations,
estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. The information in this release regarding the equipment loan with BlockFi Lending LLC and the benefits of this and other debt financing initiatives, its expansion plans, and other future plans and objectives of the Company are forward-looking information.
Toute déclaration impliquant des discussions sur des prédictions, des attentes, des croyances, des plans, des projections, des objectifs, des hypothèses, des événements ou des performances futurs (utilisant souvent, mais pas toujours, des expressions telles que « s'attend à », ou « ne s'attend pas à », « est attendu », « anticipe » ou « n'anticipe pas », « planifie », « budget », « prévu », « estime », « croit » ou « a l'intention » ou des variations de ces mots et expressions ou indiquant que certaines actions, événements ou résultats « peuvent » ou « pourraient », « pourraient », « pourraient » ou « seront » pris en compte, « estime », « croit » ou « a l'intention de » ou des variations de ces mots et expressions ou indiquant que certaines actions, certains événements ou certains résultats « peuvent » ou « pourraient », « pourraient », « pourraient » ou « vont » se produire ou être atteints) ne sont pas des déclarations de faits historiques et peuvent constituer des informations prospectives et sont destinées à identifier les informations prospectives.
This forward-looking information is based on assumptions and estimates of management of the Company at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to: the global economic climate; dilution; the Company’s limited operating history; future capital needs and uncertainty of additional financing, including the Company’s ability to utilize the Company’s at-the-market offering (the “ATM Program”) and the prices at which the Company may sell Common Shares in the ATM Program, as well as capital market conditions in general; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; share dilution resulting from the ATM Program and from other equity issuances; and volatile securities markets impacting security pricing unrelated to operating performance. In addition, particular factors that could impact future results of the business of Bitfarms include, but are not limited to: the construction and operation of blockchain infrastructure may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the applicable jurisdictions, the ability to complete current and future financings, any regulations or laws that will prevent Bitfarms from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of digital currencies, capital market conditions, restriction on labour and international travel and supply chains; and, the adoption or expansion of any regulation or law that will prevent Bitfarms from operating its business, or make it more costly to do so. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on
www.SEDAR.com (which are also available on the website of the U.S. Securities and Exchange Commission at www.sec.gov), including the annual information form for the year ended December 31, 2020, filed on April 7, 2021. The Company has also assumed that no significant events occur outside of Bitfarms’ normal course of business. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Coordonnées
Investor Relations: LHA Investor Relations
David Barnard
+1 415-433-3777
Investors@bitfarms.com
Médias américains :
YAP Global
Mia Grodsky, Chargée de clientèle
mia@yapglobal.com
Québec Media :
Ryan Affaires publiques
Valérie Pomerleau, Public Affairs and Communications
valerie@ryanap.com