Canadian crypto mining agency Bitfarms offered roughly $62 million value of Bitcoin (BTC) in June, utilizing the proceeds from the sale to cut back its debt.
In a Tuesday announcement, Bitfarms mentioned it had offered 3,000 Bitcoin within the final seven days, roughly 47% of the crypto mining agency’s roughly 6,349 BTC holdings. According to the corporate, it is 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 offered crypto seemingly included 1,500 BTC Bitfarms used to cut back its credit score facility from $100 million to $66 million in June, bringing its debt all the way down to $38 million on the time of publication.
According 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 an alternative selecting to “take action to enhance liquidity and to de-leverage and strengthen” the corporate’s steadiness sheet. Bitfarms mentioned it additionally closed a $37-million take care of 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,” mentioned 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
• Currently holds whole of three,349 BTC
• Daily BTC manufacturing of roughly 14 BTC provides additional liquidity
More data: 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 mentioned on the time the corporate’s technique was “to accumulate the most Bitcoin for the lowest cost and in the fastest amount of time.”
Related: Bitcoin vs. BTC miner shares: Bitfarms mining chief explains key variations
The transfer from Bitfarms got here amid excessive value volatility amongst main cryptocurrencies together with BTC and Ether (ETH). On Saturday, the value of Bitcoin dropped underneath $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 underneath $1,000 on Saturday — an 18-month low — earlier than rising to greater than $1,200 on Tuesday.