A U.S. subsidiary of the Canadian crypto company owes about US$20 million to BlockFi Lending; Bitfarms said it wants to “modify” the loan “to achieve terms that are better aligned with the market outlook and our business strategy.” It said it’s already defaulted on some obligations and may breach more if BlockFi doesn’t cooperate. (The Logic)

Talking point: BlockFi is in bankruptcy protection itself, part of the vortex of crypto industry failures swirling around FTX. Bitfarms said its loan from BlockFi is backed partly by crypto-mining equipment in a Washington State mining site—assets whose total value is about US$5 million. BlockFi could claim those goods, potentially even shutting down the Washington operation, but would recover just a fraction of what it’s owed if Bitfarms’s valuation is accurate. The company reported a gross operating loss of more than US$3.9 million in the third quarter of 2022. On the bright side, its share price crept above US$1 Friday, though it remains in danger of delisting by the Nasdaq if it doesn’t stay above that threshold.