Canadian crypto mining firm Bitfarms sold nearly $62 million worth of bitcoin (BTC) in June, using the proceeds from the sale to reduce its debt.
In Tuesday’s announcement, Bitfarms said it has sold 3,000 bitcoins in the past seven days, about 47% of the crypto mining firm’s approximately 6,349 BTC holdings. According to the company, it will use funds from the sale of BTC – $62 million – to “rebalance its indebtedness by reducing its BTC-backed credit facility with Galaxy Digital.” In what appears to be 1,500 BTC in crypto sold, Bitfarms reduced its credit facility from $100 million to $66 million in June, bringing its debt to $38 million at the time of publication.
According to Bitfarms Chief Financial Officer Jeff Lucas, the mining firm is “no longer HODLing” all the bitcoin that is produced daily — about 14 BTC — instead taking actions to “increase liquidity and de-leverage and strengthen the company’s balance sheet.” select the option to do. , Bitfarms said it also closed a $37 million deal with NYDIG for finance tools, bringing the firm’s liquidity to about $100 million.
Lucas said, “While we remain optimistic on long-term BTC price appreciation, this strategic change allows us to focus our top priorities on maintaining our world-class mining operations and growing our business in anticipation of improved mining economics.” enables.” “We believe that selling a portion of our BTC holdings and daily output as a source of liquidity is the best and least expensive approach in the current market environment.”
• Reduced BTC-back credit facility to US$38 million
• A total of 3,349 BTC are currently held
• Daily BTC production of around 14 BTC adds more liquidity
More information: https://t.co/xCcIUHkWsU21 June 2022
Bitfarms reported 4,300 BTC worth around $177 million as of January, when the crypto asset was worth over $41,000. Founder and CEO Emiliano Grodzki said at the time that the company’s strategy was “to accumulate the most bitcoins for the lowest cost and in the fastest time.”
related: Bitcoin vs BTC Miner Stocks: Bitfarms Mining Chief Explains Key Differences
Bitfarms’ move comes amid extreme price volatility among major cryptocurrencies, including BTC and Ether (ETH). On Saturday, the price of bitcoin dipped below $18,000 for the first time since December 2020, but has crossed $21,000 since the time of publication. ETH price dipped below $1,000 on Saturday – an 18-month low – before rising above $1,200 on Tuesday.