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Bitfarms Sold 3,000 BTC To Reduce Debt

One of the well-known cryptocurrency miners in the market, Bitfarms, admitted it sold about $62 million worth of Bitcoin last week to reduce its debt. Coincidentally, the Bitcoin price recorded a bottom at $17,700 late last week.

On June 21, Bitcoin mining company Bitfarms announced the release of half of its mined BTC. According to the source, Bitfarms sold 3,000 BTC for $62 million, which equates to an average price of $20,666/BTC. This decision caused the company’s stockpile to drop to 3,349 BTC. Also a few days ago, BTC’s price broke out to $20,000. On June 18, Bitcoin’s intraday low was $17,708.

Earlier, Bitfarms announced a mining equipment grant of up to $36 million. On average, the company mines 14 Bitcoins per day. Last week, the company said it sold 1,500 BTC to reduce its rotation loan from $100 million to $66 million. With the proceeds of this Bitcoin sale, Bitfarms continues to reduce its BTC-backed credit with Galaxy Digital.

As Chief Financial Officer Jeff Lucas said:

“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.”

In addition, Bitfarms also completed a $37 million agreement with NYDIG to finance the equipment, bringing the company’s liquidity to around $100 million.

The company held a reported 4,300 Bitcoin as of January 2022, worth around $177 million as BTC traded at over $41,000. Founder and CEO Emiliano Grodzki said at the time that the company’s strategy was to accumulate the most Bitcoins at the lowest cost and in the fastest time.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.