Mining companies are ramping up sales of their bitcoin holdings as the first cryptocurrency shows a lot of market volatility
Canada-based Bitfarms, a global bitcoin self-mining company, is now “adjusting its HODL strategy,” according to the press release, to add more liquidity and strengthen its balance sheet.
Reportedly, the company sold 3,000 BTC for around $62 million at an average price of $20,600. The main reason behind the operation was the company’s inability to provide funds to finance the equipment.
Following the deal, the company’s total bitcoin holdings stood at 3,349 bitcoins, with 14 BTC added to the balance every day. Additionally, Canadian bitcoin mining company will proceed with Galaxy Digital LLC to reduce the BTC-backed credit facility from $66 million to $38 million.
But despite prior debt from Galaxy Digital and Illiquid balance sheets, the main reason behind the operation was the extremely high volatility in the cryptocurrency market that caused bitcoin to drop below 2017’s high of $19,000.
From now on, the company will no longer HODL its assets produced on a daily basis, which means Bitfarms will continue to exert selling pressure on the market to provide more liquidity to its balance sheet by increasing the percentage of stablecoins or fiat currencies in its portfolio.
But despite selling digital gold, the company said it remains bullish on the long-term BTC price, and the strategic change reflects BitFarm’s focus on providing “world-class” bitcoin mining solutions and gearing up to improve crypto economics. does not change.
As of the summer of 2022, the company has $42 million in cash or illiquid assets and more than 3,000 BTC on its balance sheet.