Cryptocurrency mining company Bitfarms sets to get $20m loan from Dominion Capital LLC

Israel's Tel Aviv-listed cryptocurrency mining company, Bitfarms is going to get a USD 20 million loan at a 10 percent rate of interest via its subsidiary Backbone Hosting Solutions Inc.

Previously named Blockchain Mining Ltd., the crypto mining specialized Bitfarms will utilize the loan to broaden its daily operations. The loan will be provided by New York-headquartered Dominion Capital LLC in four stages. According to Calcalist's CTech, Bitfarms has already received USD 5 million of the 24-month loan from the New York-based company. Dominion received equity purchase warrants for up to 6.7 million shares of Bitfarms Ltd. (Canada), as per the agreement.

Renowned as a cryptocurrency mining firm, Bitfarms has merged with Backbone Hosting Solutions, a Canadian blockchain mining company, in 2017 when there was a cryptocurrency hype that witnessed scaling up of thousands of percentages on the Tel Aviv exchange.

Last week, Bitfarms' Chief Executive Officer, Roy Sebag took to social media to announce that he had sold all his bitcoin assets barring his 22.5 percent Bitfarms stake. He also declared that the crypto mining company Bitfirms would be reporting a depreciation of around USD 19 million in its annual report for 2018, mostly related to the valuation of its crypto mining assets.

I have sold my bitcoin today from the prior trade. No crypto exposure currently other than my stake in Bitfarms.

— Roy Sebag (@roysebag) March 6, 2019

One thing people have to recognize is that being a contrarian means you are constantly wrong. And as an entrepreneur I also fail all the time. What I have been good at is cutting losses and valuing the information which arises from each failure to reposition and maintain momentum

— Roy Sebag (@roysebag) March 6, 2019

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