The miner sold 3,000 BTC, almost half of its treasury of the flagship digital asset, as part of a plan to re-organize its reserves amid declining prices.
Amid price decay in the market, crypto mining entity Bitfarms decided to restructure its Bitcoin holding strategy to improve its liquidity and reduce debt.
The Canadian entity, listed on the Toronto Stock Exchange, highlighted last week that it got rid of at least 3,000 bitcoins (BTC) for approximately $62 million to support part of a debt collateralized in the digital currency. The sale accounted for nearly half of Bitfarms’ total housed funds in Bitcoin, which now stands at 3,349 BTC.
In a statement launched Tuesday, Bitfarms highlighted that the proceeds generated from the sale served as an instrument to increase its liquidity while also giving the miner the possibility to draw down a Bitcoin-backed line of credit from Galaxy Digital to $38 million.
The Toronto-based miner also assured the outlets that the strategy led its corporate liquidity to $100 million and closed a $37 million equipment financing agreement with NYDIG. Bitfarms revealed this news last week in a statement, which got revealed through its official Twitter.
According to information provided by CoinDesk last week, the mining entity had reported the sale of 1,500 BTC to minimize its debt. This week’s announcement confirmed to the outlets that Bitfarms just chose to double this sum, setting a significant reduction over its Bitcoin holdings. According to the report, the company generates a standard of 14 BTC.
Bitfarms still Believes Bitcoin will Rise in the Future
The news arrived at a moment of extraordinary pressure for Bitcoin miners and holders, who are afraid of a sudden Crashdown the markets experience.
The flagship cryptocurrency plunged below $20,000 last week, more than 70% below its all-time price high in November. The situation appears to be the same for the altcoins, as the global capitalization of digital assets has shrunk to less than $1 trillion after approaching at least $3 trillion last year.
According to CoinDesk, the drop in the price of Bitcoin led miners’ profit margins to fall after many miners went heavily into debt to support their financial activities.
According to CoinDesk, Bitfarms was one of the miners with a plan to keep its daily bitcoin output balanced, applying loans and stock offerings to set an expansive activity and keep daily costs under the radar.
In April, when Bitcoin was trading at almost double its current cost, the company’s director of mining, Ben Gagnon, spoke about a more confident scenario to experience an increase in the flagship digital asset.
On the other hand, Bitfarms shows optimism about BTC price appreciation in the long term and that the change in holding strategy allows the entity to keep the integrity of the business while they keep growing along with the fluctuations in the market.
By: Jenson Nuñez
