Bitfarms (BITF) stock fell 5.7% in extended trading on Wednesday after the company revealed its intention to offer $300 million worth of convertible senior notes.

The offering comes after the Canadian firm's U.S.-listed shares closed at the highest level in over three and a half years. The company had a market capitalization of $3.6 billion as of Wednesday. Bitfarms also expects to grant the initial purchasers of the six-year bonds an option to purchase up to an additional $60 million principal amount of notes, under certain conditions.

Retail sentiment on Stocktwits about Bitfarms was still in the 'extremely bullish' territory at the time of writing.

The company intends to utilize the proceeds from the fundraising for general corporate purposes and to enter into capped call transactions, which are generally expected to reduce the potential dilution to Bitfarm's ordinary shares upon any conversion of the notes.

“They're raising cheap capital while protecting shareholders from excessive dilution,” one user wrote.

“This isn't desperation financing; it's an opportunistic raise to strengthen the balance sheet ahead of the next growth phase. Short-term pressure, sure, but long-term, this can put Bitfarms in a stronger position,” another user said.

Over the past few weeks, other miners, including Cipher Mining and IREN Energy, have also issued convertible bonds to raise capital for expansion into AI data centers. Last week, Bitfarms converted its previously announced private debt facility from Macquarie Group, originally up to $300 million, into a project-specific financing facility of the same amount for the development of its data center campus in Panther Creek, Pennsylvania.

Bitfarms' stock has more than quadrupled this year, amid optimism around data centers and a rise in cryptocurrency prices. Earlier this week, the company named Bank of America executive Jonathan Mir as its Chief Financial Officer, replacing Jeff Lucas, who will retire this month.

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