Canadian crypto mining firm Bitfarms sold about $62 million worth of Bitcoin (bitcoin) in June, used the sale proceeds to reduce its debt.
In an announcement on Tuesday, Bitfarms Say It sold 3,000 bitcoins in the past seven days, or about 47% of the crypto miner’s roughly 6,349 bitcoin holdings. According to the company, it will use the funds from the BTC sale ($62 million) “to rebalance its debt by reducing its BTC-backed line of credit with Galaxy Digital.” The cryptocurrency sold appears to include 1,500 BTC Bitfarms used It reduced its line of credit from $100 million to $66 million in June, bringing its debt down to $38 million at launch.
According to Bitfarms CFO Jeff Lucas, the mining company is “no longer hoarding” all the bitcoins it produces every day — about 14 bitcoins — instead choosing to “take action to increase liquidity, deleverage and strengthen ” The company’s balance sheet. Bitfarms said it also entered into a $37 million equipment financing deal with NYDIG, bringing the company’s liquidity to about $100 million.
“While we remain bullish on the long-term appreciation of Bitcoin’s price, this strategic change allows us to focus on our top priorities of maintaining our world-class mining operation and continuing to grow our business with a view to improving the mining economy,” Lucas said. “We believe that selling some of our BTC holdings and daily production as a source of liquidity is the best and cheapest approach in the current market environment.”
• Disbursement of BTC return credit line to $38 million
• Currently holding a total of 3,349 BTC
• BTC production of around 14 BTC per day increases liquidity
More information: https://t.co/xCcIUHkWsU
— Bit Farms (@Bitfarms_io) June 21, 2022
Bit Farm Reportedly holds 4,300 BTC As of January, when the price of the crypto asset surpassed $41,000, it was worth about $177 million. Founder and CEO Emiliano Grodzki said at the time that the company’s strategy was to “accumulate the most bitcoin at the lowest cost and in the fastest time.”
The move from Bitfarms is major cryptocurrencies including Bitcoin and Ethereum (Ethereum).Bitcoin’s price fell below $18,000 for the first time since December 2020 on Saturday, but has since Refund over $21,000 at the time of publication. ETH prices experienced a similar drop on Saturday, falling below $1,000 — an 18-month low — before rising above $1,200 on Tuesday.