Bitzero Repays $22.4M Loan as Nordic AI Data Center Plans Advance
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Key Takeaways
- Bitzero fully repaid its $25 million debt facility, releasing all related liens and security interests.
- The company funds operations and power-related capital expenditures through bitcoin mining cash flow.
- Power readiness is expected for 110MW in Norway this year, with transformers and high-voltage cable arriving in Q4.
Bitzero Holdings said it has eliminated a senior secured loan and released collateral over its assets as the Bitcoin miner pushes ahead with plans to convert its Nordic power portfolio into infrastructure for AI computing.
The Vancouver-based company repaid about $22.4 million of principal and $45,700 of accrued interest on Aug. 6, according to an Aug. 31 regulatory filing. The repayment ended the loan’s financial covenants and released liens covering assets in Norway, North Dakota and other jurisdictions. It also made $2 million held in a lender-controlled account available to Bitzero.
Bitzero funded the payment mainly with proceeds from a private placement that raised about $24.8 million in July, supplemented by existing cash. The financing involved 5.83 million special warrants sold for $4.25 apiece, with each security converting into one common share and one purchase warrant under specified conditions.
The transaction removes a secured obligation from Bitzero’s balance sheet, but the company continues to face substantial funding requirements as it develops power-intensive data-center sites. Its June-quarter financial statements identified a material uncertainty that could cast significant doubt on its ability to continue as a going concern. As of June 30, Bitzero had $2.9 million in cash and cash held in trust, $2.5 million in digital currency, and $2 million of restricted cash released by the loan repayment, according to its management discussion and analysis.
