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

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

On June 21, Bitfarms, an Argentine crypto mining company based in Canada, announced adjustments to its HODL strategy to improve the company’s liquidity.

according to a Press releaseThe company sold a total of 3,000 bitcoins (BTC) over the past week for approximately US$63 million to improve its corporate liquidity by approximately US$100 million.

In this way, the company’s bitcoin reserves were reduced from approximately 6,349 BTC to a total of 3,349 BTC, which is calculated by the daily production they made during June. Through this sale, the company was left with much less BTC reserves than at the beginning of the year, which stood at 4,300 BTC.

It’s hard to deal with a volatile market

According to company data, Bitfarms can generate an average of 14 BTC per day, with approximately 1,260 BTC receiving quarterly. Therefore, they can afford to sell at a loss, given that the company bought 1,000 BTC in early January for $43.2 million. The same amount of bitcoin can now be bought for less than half the price, or about $20.6 million.

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

“Given the extremely volatile markets, we have continued to take steps to improve liquidity and to reduce and strengthen our balance sheet. Specifically, we have sold 1,500 more bitcoins and are no longer hiding our entire daily BTC production.”

Bitfarms had to sell its bitcoins at a loss to capitalize

Lucas indicated that although he remains optimistic on the long-term price of bitcoin, he 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 output as a source of liquidity is the best and least expensive approach in the current market environment.”

Bitfarms has 7 industrial-scale facilities in Quebec, Washington and Paraguay, 99% powered by hydroelectric energy and secured by long-term energy contracts.

So, despite facing financial problems, like most large crypto companies that have had to cut their staff and expenses, it should be noted that, if market conditions change, BitFarm would be one of the top singles. Will come back to be one. Mining companies yield thanks to their daily production of new BTC.

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

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