Bitfarm Invests $43 Million To Purchase Bitcoin

Bitfarms, a Nasdaq-listed Canadian cryptocurrency mining corporation, has revealed it has invested $43.2 million in bitcoin after the price of the leading cryptocurrency fell roughly 12% in the first week of the year in order to boost the number of BTC it possesses.

According to a press release issued by Bitfarms, it published a total of 1,000 BTC with the funds, increasing its total BTC holdings by 30% to over 4,300 BTC worth almost $180 million at the time of publication.

Emiliano Grodzki, Bitfarms’ founder and CEO, was reported as saying the company’s mission is to “acquire the most Bitcoin for the lowest cost and in the shortest amount of time for the benefit of our shareholders.” Grodzki continued:

“To that end, we continually optimize our capital allocation. With the dip in BTC while mining hardware prices remain high, we seized the opportunity to move cash into BTC.“

The CEO went on to say that the company is still dedicated to executing its operational growth plan and meeting its goal of 8 exahashes per second by the end of the year. It’s worth noting that Bitfarms’ 4,300 BTC holdings aren’t the largest hoard owned by a publicly listed corporation.

MicroStrategy, a business analytics organization, is the market leader in this category, having purchased 124,391 BTC for a total of $3.75 billion. Even with the cryptocurrency’s recent collapse, the coins are still valued over $5.2 billion.

Then there’s Tesla, whose estimated 43,200 BTC holdings are worth $1.8 billion and were purchased for $1.5 billion. Before the price of the flagship cryptocurrency began to fall, Tesla was believed to be up $1 billion on its investment.

While some experts feel that betting on bitcoin is a bad idea due to its volatility, others view it as a store of wealth that will help preserve portfolios. Crypto millionaire Brock Pierce claimed that Bitcoin might reach $200,000 this year, while Bloomberg analyst Mike McGlone stated that the Federal Reserve’s forthcoming rate rises could help Bitcoin outperform equities.

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Patrick

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