“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,” said chief financial officer Jeff Lucas.
Canadian bitcoin mining startup Bitfarms sold around $62 million worth of Bitcoin (BTC) in June, using the revenues from the transaction to pay its debt.
In a Tuesday report, Bitfarms stated it had sold 3,000 Bitcoin in the past week, approximately 47% of the crypto mining firm’s roughly 6,349 BTC holdings. According to the firm, it would use the funds from the BTC sales – $62 million — to rebalance its indebtedness by decreasing its BTC-backed credit facility with Galaxy Digital. The sold crypto presumably included 1,500 BTC Bitfarms utilised to lower its credit facility from $100 million to $66 million in June, reducing its debt to $38 million at the time of publishing.
According to Bitfarms chief financial officer Jeff Lucas, the mining firm is “no longer HODLing” all the Bitcoin it generates daily — about 14 BTC — instead deciding to boost liquidity and deleverage and strengthen” the company’s balance sheet. Bitfarms said it also executed a $37-million agreement with NYDIG to finance equipment, increasing the firm’s liquidity to about $100 million.
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While optimistic about long-term BTC price appreciation, they said that this strategy adjustment enables them to focus on their top goals of maintaining our world-class mining operations and continuing to build the business in anticipation of improving mining economics. Selling a percentage of BTC holdings and daily output as a source of liquidity is the best and least expensive way in the current climate.
#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 liquidity🔗 More info: https://t.co/xCcIUHkWsU
🚀 $BITF #BTC #BitcoinMining #Blockchain pic.twitter.com/L58siaA99c
— Bitfarms (@Bitfarms_io) June 21, 2022
Bitfarms possessed an estimated 4,300 BTC as of January, valued at around $177 million when the crypto asset was at a price of more than $41,000. According to founder and CEO Emiliano Grodzki, the company’s objective was to acquire the most Bitcoin quickly for the lowest costfor the lowest cost and quickly.
The decision from Bitfarms comes amid high price volatility among key cryptocurrencies, including BTC and Ether (ETH). On Saturday, the BTC price went under $18,000 but rose to over $21,000 afterwards. The ETH price witnessed a similar plunge to under $1,000 on Saturday before rebounding to above $1,200 on Tuesday.