Shares of Bitfarms Ltd. (BITF) tumbled 7.42% in after-hours trading on Wednesday, following the company's announcement of a proposed $300 million convertible senior notes offering. This sharp decline comes on the heels of a strong performance earlier in the day, where the stock had seen significant gains in pre-market and regular trading sessions.

The cryptocurrency mining company revealed its plans to offer $300 million in convertible senior notes due in the future. While such offerings can provide companies with necessary capital for growth and operations, they often lead to stock price declines due to concerns about potential dilution of existing shares. Investors typically react negatively to the prospect of their ownership stake being reduced if the notes are converted to stock.

Despite the after-hours plunge, it's worth noting that Bitfarms had enjoyed a positive trend earlier in the day. The stock had risen by 9.2% in pre-market trading, reflecting broader strength in cryptocurrency-related stocks. This volatility underscores the dynamic nature of the crypto mining sector and its sensitivity to both company-specific news and broader market trends in digital assets.