Bitfarms Stock Dips 4% Pre-Market After Announcing $300M Convertible Notes Offering Amid AI Pivot Surge

Bitfarms (NASDAQ: BITF) shares dropped 4% in pre-market trading following the company’s announcement of a proposed $300 million offering in convertible senior notes due January 15, 2031. The Bitcoin mining firm also granted initial purchasers the option to acquire an additional $60 million in notes within 13 days of issuance, potentially bringing the total offering to $360 million.

The convertible notes, classified as senior unsecured obligations, will pay semi-annual interest beginning July 15, 2026. Holders will have the option to convert their notes into cash, Bitfarms common shares, or a combination of both, depending on the company’s discretion. However, conversion will remain restricted until October 15, 2030, except under specific conditions.

Bitfarms stated that proceeds from the offering will be used for general corporate purposes and to fund capped call transactions — a strategy aimed at reducing potential dilution of its shares. These transactions are designed to offset dilution up to 125% of Bitfarms’ share price at the time of pricing.

The announcement comes after a stellar performance year for Bitfarms, whose shares have skyrocketed 315% year-to-date and surged over 400% since early September. This remarkable growth is largely attributed to the company’s strategic shift from traditional crypto mining to AI infrastructure development, positioning itself to capitalize on the booming artificial intelligence industry.

Despite the short-term stock decline, investor sentiment around Bitfarms remains optimistic due to its aggressive expansion into AI-driven operations. As the company continues evolving its business model, analysts and market watchers are closely monitoring how its capital-raising efforts will fuel future growth and technological innovation within both the AI and blockchain sectors.