A Canadian Bitcoin mining entity, Bitfarms, has obtained a significant financial boost of up to $300 million in private debt from the Australian investment firm Macquarie. This funding is aimed at developing its data center project.

The initial agreement includes a private debt facility worth $300 million from Macquarie Equipment Capital, specifically to aid in the advancement of the Panther Creek data center located in Pennsylvania.

In a press release dated April 2, Bitfarms announced that the first installment of the loan amounts to $50 million, while the remainder will be accessible upon the achievement of certain development milestones by the company.

Ben Gagnon, the CEO of Bitfarms, emphasized that this collaboration with Macquarie marks a critical step in investing in the immediate growth of their Panther Creek facility. He noted that given the explosive rise of AI and the correspondingly increasing demand for energy and infrastructure, this funding arrives at a crucial time.

The terms of the loan indicate that the maturity for each facility is set at two years from the closing date, with an annual interest rate of 8%. Notably, interest on the initial $50 million draw will be paid in kind for the first three months.

Joshua Stevens, an associate director at Macquarie, highlighted the advantageous location of the facility, situated within 100 miles of major cities like New York City and Philadelphia, which could attract high-performance computing clients. In response to this announcement, Bitfarms’ shares saw an increase of 2.54% on the Nasdaq.

This loan arrangement follows Bitfarms’ recent full acquisition of Stronghold Digital Mining through a stock-for-stock transaction, whereby shareholders of Stronghold received 2.52 Bitfarms shares for each share they owned.

As part of this deal, nearly 60 million Bitfarms shares and over 10.5 million warrants were issued, resulting in Stronghold’s stock being delisted from the Nasdaq and ceasing to trade.