- BTC mining company Bitfarms announced the sale of 3,000 Bitcoin worth $62 million to boost its liquidity.
- The average selling price of BTC was $20,600.
- The sale of 3,000 BTC meant almost 50% of the total BTC that Bitfarms owned.
The drop in the prices of all crypto assets notably affected the market, and although, during the last hours there was a certain rebound, the most experienced do not trust what is happening.
Although the signal Bitfarms it can mark that the bottom of the market has already been touched and now the rise will begin.
Bitfarms sells 3 thousand BTC
The BTC mining company publicly traded announced the sale of 3,000 Bitcoin worth $62 million over the past week, with an average selling price of $20,600.
This, from some perspectives, could mean a potential floor. It is also worth noting that digital gold registers another day in the green, and managed to momentarily place itself above $21,000 dollars per unit, for which a possible resistance is posed.
Adjustment in the firm’s strategy
The sale, according to the company, is due to a new strategy in which it is “adjusting its treasury and trying to boost its liquidity.” This is already close to 100 million dollars. Another important news from Bitfarms was the fact of canceling an agreement to buy new hardware, in which it was going to pay close to 37 million.
“Given the extreme volatility in the markets, we have continued to take steps to improve liquidity and to deleverage and strengthen our balance sheet. Specifically, we have sold 1,500 more Bitcoin and we are no longer HODLing all of our daily BTC production.”, revealed Jeff Lucas, chief financial officer of Bitfarms, as recorded Bitcoinist.
Does the sale of Bitfarms imply a lack of confidence in the future of BTC? No. And the mining company made it very clear with more statements from Lucas:
“Though we remain bullish on BTC price appreciation in the long run. This strategic shift allows us to focus on our top priorities of maintaining our world-class mining operations and continuing to grow our business in anticipation of the improving mining economy.a”.
Bitfarms reserves decrease
The sale of 3,000 BTC meant almost 50% of the total that Bitfarms owned, which now stands at 3,349. It is worth clarifying that the daily production of the company is in the range of 14 BTC, which today means just under 300,000 dollars. How much was it at the maximum peak? Almost a million.
Part of the liquidity obtained from the sales will be used to pay off the loan they have with Galaxy Digital, a company that provides financial services and is also listed on the stock market under the tickr GLXY. Bitfarms did not disclose how much they owe. They also want to further reduce “their leverage.”
Bitcoin is down more than 75% from its all-time high of $69,000 and miners are trying to grab dollars for what is expected to be a long crypto winter. This selling pressure could complicate the recovery of BTC as well as the rest of the cryptocurrencies, which normally accompany the movements of what is the largest in the market.
It only remains to wait for what movements are recorded in the coming days/weeks to confirm or deny a change in trends. Cryptocurrencies have been through tough days and investors are waiting for good news.
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