Canadian cryptocurrency mining company Bitfarms sold approximately $62 million worth of Bitcoin (BTC) in June, using proceeds from the sale to pay down its debt.
In an announcement Tuesday, Bitfarms said it had sold 3,000 bitcoins in the past seven days, roughly 47% of the 6,349 BTC held by the cryptocurrency mining company. According to the company, it will use the funds from the BTC sales – USD 62 million – to “rebalance its indebtedness by reducing its BTC-backed line of credit with Galaxy Digital.” The cryptocurrencies sold apparently included 1,500 BTC that Bitfarms used to reduce its $100 million credit line by $66 million in June, reducing its debt to $38 million at the time of publishing this story.
According to Bitfarms CFO Jeff Lucas, the mining company “is no longer HODLing” all the bitcoins it produces daily -approximately 14 BTC-, but has chosen to “take measures to improve liquidity and deleverage and strengthen” the company’s balance sheet. Bitfarms said it also closed a $37 million deal with NYDIG to fund equipment, bringing the company’s liquidity to about $100 million.
“While we remain bullish on BTC price appreciation over the long term, this strategic change 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.” , Lucas said. “We believe that selling a portion of our BTC holdings and daily production as a source of liquidity is the best and least expensive method in the current market environment.”
#bitfarms adjusts #HODL Strategy
• Pays down BTC-back credit facility to US$38 million
• Currently holds total of 3,349 BTC
• Daily BTC production of approximately 14 BTC adds further liquidityMore info: https://t.co/xCcIUHkWsU
$BITF #BTC #BitcoinMining #Blockchain pic.twitter.com/L58siaA99c
—Bitfarms (@Bitfarms_io) June 21, 2022
Bitfarms had a report of 4,300 BTC in January, worth around $177 million when the crypto asset was priced at over $41,000. Founder and CEO Emiliano Grodzki said at the time that the company’s strategy was to “accumulate the most Bitcoin for the least cost and in the fastest amount of time.”
Bitfarms’ move came amid extreme price volatility among major cryptocurrencies, including BTC and Ether (ETH). On Saturday, Bitcoin price dipped below $18,000 for the first time since December 2020, but has since broken back above $21,000 at press time. The price of ETH saw a similar drop to below $1,000 on Saturday – an 18-month low – before climbing above $1,200 on Tuesday.
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