Bitcoin (BTC) mining business Bitfarms has actually unveiled plans to modify an existing loan arrangement with BlockFi– a relocation the company stated would lower its indebtedness amid the bear market.On Jan. 13,

Bitfarm divulged that it is working with financial institutions to customize a loan agreement for Backbone Mining Solutions, or BMS, which owns and runs Bitfarms’ 20-megawatt mining center in Washington state. BMS received a $32 million equipment financing loan from Bitcoin lending institution BlockFi in February 2022. The loan was secured against existing BMS assets, including its miners and a particular percentage of BTC produced by its mining rigs.

When BMS received the loan facility, Bitcoin was trading north of $40,000. The worth of the flagship digital property has considering that plunged below $20,000, reaching a low of around $15,600 in November, according to data from Pandoraland Markets Pro and TradingView.

As a result of the bear market, the possessions securing BMS’ loan have actually fallen to around $5 million, while the impressive principal and interest are approximately $20 million.

Bitfarms “identified that it would be recommended to seek more beneficial terms from BlockFi and potentially take other actions to reduce the BMS commitments,” the company said.

Jeff Lucas, primary financial officer of Bitfarms, further discussed:

“Considering today’s tough market conditions, we are seeking to customize our Washington state financial obligation center to accomplish terms that are better aligned with the market outlook and our business strategy.”

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Bitfarms and its subsidiaries hold approximately $36 million worth of unencumbered crypto properties versus roughly $47 million worth of debt, that includes the $20 million BlockFi loan. In an effort to cut costs, the company has actually increased functional effectiveness by deploying new miners.