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. In keeping with the corporate, it is going to use the funds from the BTC gross sales — $62 million — to “rebalance its indebtedness by decreasing its BTC-backed credit score 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.
In keeping with Bitfarms chief monetary officer Jeff Lucas, the mining agency is “not HODLing” all of the Bitcoin it produces each day — roughly 14 BTC — as an alternative selecting to “take motion to reinforce liquidity and to de-leverage and strengthen” the corporate’s stability sheet. Bitfarms mentioned it additionally closed a $37-million cope with NYDIG to finance gear, bringing the agency’s liquidity to roughly $100 million.
“Whereas we stay bullish on long-term BTC worth appreciation, this strategic change permits us to give attention to our prime priorities of sustaining our world-class mining operations and persevering with to develop our enterprise in anticipation of improved mining economics,” mentioned Lucas. “We consider that promoting a portion of our BTC holdings and each day manufacturing as a supply of liquidity is the very best and least costly methodology within the present market surroundings.”
• Pays down BTC-back credit score facility to US$38 million
• At the moment holds whole of three,349 BTC
• Each day BTC manufacturing of roughly 14 BTC provides additional liquidity
Extra 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 worth of greater than $41,000. Founder and CEO Emiliano Grodzki mentioned on the time the corporate’s technique was “to build up essentially the most Bitcoin for the bottom price and within the quickest period of time.”
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The transfer from Bitfarms got here amid excessive worth 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 worth skilled the same drop to beneath $1,000 on Saturday — an 18-month low — earlier than rising to greater than $1,200 on Tuesday.