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.
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