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Crypto Mining Giant Bitfarms Sells 3,000 BTC And Adjusts Its HODL Strategy

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On June 21, Bitfarms, an Argentinean cryptocurrency mining company operating in Canada, announced an adjustment to its HODL strategy to improve the company’s liquidity.

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According to Press releasethe company sold a total of 3,000 bitcoins (BTC) in the last week for about $63 million to improve its corporate liquidity by almost $100 million.

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Thus, the company’s bitcoin holdings dropped from around 6,349 BTC to 3,349 BTC when taking into account the daily mining of what they were transporting during June. With this sale, the company was left with much smaller BTC reserves than at the beginning of the year, which stood at 4,300 BTC.

Difficult to deal with a volatile market

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According to the company, Bitfarms can produce an average of 14 BTC per day, generating nearly 1,260 BTC quarterly. So they can afford to sell at a loss, given that the company bought 1,000 BTC for $43.2 million in early January. The same amount of Bitcoin can be bought right now for less than half the price, or about $20.6 million.

However, Bitfarms CFO Jeff Lucas said that due to the volatility of the crypto market, the company had to sell its assets, among other things, to reduce its debt to Galaxy Digital LLC (Galaxy) from $66 million to $38 million.


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“Given extremely volatile markets, we have continued to take steps to improve liquidity, deleverage and strengthen our balance sheet. Specifically, we sold another 1,500 bitcoins and no longer hold all of our daily bitcoin mining.”

Bitfarms had to sell their bitcoins at a loss to capitalize

Lucas indicated that while they remain bullish on the long-term price of Bitcoin, they should focus on the company’s top priorities of maintaining its position as a world-class mining operator while continuing to expand its business.

“We believe that selling a portion of our BTC holdings and daily mining as a source of liquidity is the best and least expensive method in the current market conditions.”

Bitfarms has 7 industrial scale facilities in Quebec, Washington DC and Paraguay, 99% of which are powered by hydroelectric power and backed by long-term energy contracts.

Therefore, despite the financial problems it faces, like most large crypto companies that have had to cut their staff and expenses, it should be noted that if market conditions change, Bitfarms will single-handedly return to being one of the highest yielding mining companies. thanks to the daily production of new BTC.

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Credit : cryptopotato.com

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