Bitfarms has sold 3,000 Bitcoins as part of its strategy to improve liquidity and pay off debts. Company management considers selling cryptocurrencies to be the best and cheapest method in the current environment.
- 1 Cryptocurrency miner sells their BTC to pay off debt
- 2 “We think it is the best and cheapest method in the current market environment”
- 3 Share this:
Cryptocurrency miner sells their BTC to pay off debt
Canadian cryptocurrency mining firm Bitfarms has sold nearly $62 million worth of Bitcoin (BTC). The company said it used the proceeds from the sale to reduce its debt in June. Jeff Lucas, chief financial officer of Bitfarms, made the following statement on the subject:
We sell some of our BTC holdings and daily production as a source of liquidity. Because this is the best and cheapest method in the current market environment.
In this context, in a statement on Tuesday, Bitfarms said that it has sold 3,000 Bitcoins in the last seven days. This means that the crypto mining firm has sold roughly 47% of its roughly 6,349 BTC holdings. According to the company, $62 million in funds from BTC sales will be used for debt settlement. Namely, it will rebalance its debt by reducing its BTC-backed loan facility with Galaxy Digital.
“We think it is the best and cheapest method in the current market environment”
Bitfarms, with the cryptocurrency sold, reduced its loan facility from $100 million to $66 million in June. He also reduced his debt to $38 million with the current payment. According to Bitfarms chief financial officer Jeff Lucas, the mining firm is no longer HODLing all the Bitcoin it produces daily (roughly 14 BTC). Instead it chooses to take action to ‘increase liquidity and de-leverage and strengthen the company’s balance sheet.
Bitfarms also said it has signed a $37 million deal with NYDIG to fund the equipment. In addition, he announced that the firm has increased its liquidity to approximately $100 million. Jeff Lucas made the following statement on the subject:
Our long-term BTC price prediction continues to rise. However, the strategic change allows us to focus on our top priorities of maintaining our world-class mining operations and continuing to grow our business in anticipation of an improved mining economy. We sell some of our BTC holdings and our daily production as a source of liquidity. We think this is the best and cheapest method in the current market environment.
Meanwhile, Bitfarms had 4,300 BTC worth about $177 million as of January, when Bitcoin was above $41,000. Founder and CEO Emiliano Grodzki said the company’s strategy is to “accumulate the most Bitcoin at the lowest cost and in the fastest time.”
There has been extreme price volatility in major cryptocurrencies, including BTC and ETH, in recent days. Bitfarms’ move came in the middle of that. AmkNews.comAs you follow on Saturday, the BTC price dropped below $18,000. This is the first time since December 2020. However, since then, Bitcoin has climbed above $21,000. ETH price, on the other hand, dropped similarly to an 18-month low below $1,000 on Saturday. However, the leading altcoin broke above $1,200 on Tuesday.
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