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 stated it had sold 3,000 Bitcoin within the final seven days, roughly 47% of the crypto mining agency’s roughly 6,349 BTC holdings. In accordance to the corporate, it’s going to 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.
In accordance to Bitfarms chief monetary officer Jeff Lucas, the mining agency is “no longer HODLing” all of the Bitcoin it produces each day — roughly 14 BTC — as a substitute selecting to “take action to enhance liquidity and to de-leverage and strengthen” the corporate’s stability sheet. Bitfarms stated it additionally closed a $37-million cope with 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.”
• Pays down BTC-back credit score facility to US$38 million
• Presently holds complete of 3,349 BTC
• Day by day BTC manufacturing of roughly 14 BTC provides additional liquidity
Extra information: https://t.co/xCcIUHkWsU
— Bitfarms (@Bitfarms_io) June 21, 2022
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.”
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The transfer from Bitfarms got here amid excessive value volatility amongst main cryptocurrencies together with BTC and Ether (ETH). On Saturday, the worth of Bitcoin dropped beneath $18,000 for the primary time since December 2020 however has since returned to greater than $21,000 on the time of publication. The ETH value skilled the same drop to beneath $1,000 on Saturday — an 18-month low — earlier than rising to greater than $1,200 on Tuesday.