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Tuesday, January 31, 2023

Bitfarms sold 3K Bitcoin as part of strategy to improve liquidity and pay debts

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Canadian crypto mining agency Bitfarms sold roughly $62 million value of Bitcoin (BTC) in June, utilizing the proceeds from the sale to scale back its debt.

In a Tuesday announcement, Bitfarms said it had sold 3,000 Bitcoin within the final seven days, roughly 47% of the crypto mining agency’s roughly 6,349 BTC holdings. According to the corporate, it would use the funds from the BTC gross sales — $62 million — to “rebalance its indebtedness by reducing its BTC-backed credit facility with Galaxy Digital.” The sold crypto seemingly included 1,500 BTC Bitfarms used to scale back its credit score facility from $100 million to $66 million in June, bringing its debt down to $38 million on the time of publication.

According to Bitfarms chief monetary officer Jeff Lucas, the mining agency is “no longer HODLing” all of the Bitcoin it produces every day — roughly 14 BTC — as a substitute selecting to “take action to enhance liquidity and to de-leverage and strengthen” the corporate’s steadiness sheet. Bitfarms stated it additionally closed a $37-million take care of NYDIG to finance tools, bringing the agency’s liquidity to roughly $100 million.

“While we remain bullish on long-term BTC price appreciation, this strategic change enables us to focus on our top priorities of maintaining our world-class mining operations and continuing to grow our business in anticipation of improved mining economics,” stated Lucas. “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 held a reported 4,300 BTC as of January, value roughly $177 million when the crypto asset was at a value of greater than $41,000. Founder and CEO Emiliano Grodzki stated on the time the corporate’s strategy was “to accumulate the most Bitcoin for the lowest cost and in the fastest amount of time.”

Related: Bitcoin vs. BTC miner stocks: Bitfarms mining chief explains key differences

The transfer from Bitfarms got here amid excessive value volatility amongst major cryptocurrencies together with BTC and Ether (ETH). On Saturday, the value of Bitcoin dropped underneath $18,000 for the primary time since December 2020 however has since returned to more than $21,000 on the time of publication. The ETH value skilled an analogous drop to underneath $1,000 on Saturday — an 18-month low — earlier than rising to greater than $1,200 on Tuesday.