The BitFarms mining giant sold 3000 BTC and re-adjusted its HODL strategy due to the market crisis that hit the crypto businesses worldwide as we read every day in our crypto news.
The Bitfarms mining giant based in Canada announced an adjustment to its HODL strategy to improve the company’s liquidity. According to the press release, the company sold 3000 BTC over the past week for $63 million in order to improve its liquidity by $100 million. The company’s BTC reserves were reduced to a total of 3349 counting the daily production of what they carried in June. With the sale, the company was left with lower BTC reserves than it had at the start of the year which was at 4300 BC.
• Pays down BTC-back credit facility to US$38 million
• Currently holds total of 3,349 BTC
• Daily BTC production of approximately 14 BTC adds further liquidity
🔗 More info: https://t.co/xCcIUHkWsU
— Bitfarms (@Bitfarms_io) June 21, 2022
According to the company data, Bitfamrs is able to produce 14 BTC per day and obtain 1260 BTC quarterly. It can afford to sell at a loss given the company bought 1000 BTC for $43.2 million at the start of January. The same amount of BTC can be purchased right now at less than half the price of $20.6 million. However, the CEO Jeff Lucas said that due to the volatility of the market, the company had to sell its holdings and decrease its debt owned to Galaxy Digital LLC from $66M to $38M:
“Given the extremely volatile markets, we have continued to take steps to improve liquidity and to deleverage and strengthen our balance sheet. Specifically, we have sold 1,500 more Bitcoin and are no longer HODLing our entire daily BTC production.”
Lucas indicated that they still remain bullish on the BTC long-term price and they have to focus on the company priorities of maintainign the position as a world-class mining operator while continuing to expand businesses:
“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 has 7 industrial-scale facilities in Paraguay, Washington, and Quebec, and 99% of them are powered by hydroelectric energy and secured by long-term energy contracts. Despite the financial problems right now, the crypto companies are starting to cut down on staff and expenses but it should be noted that if the market conditions change, Bitfarms will return to being the biggest yielding mining company due to its daily production of new BTC.
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