Bitcoin mining company Bitfarms announced to adjust its HODL strategy
Bitfarms, a Bitcoin mining business based in Canada, announced to change its HODL strategy in order to increase the company’s liquidity.
In order to increase its company liquidity by over US$100 million, the company sold 3,000 Bitcoin in total during the past week for about $63 million.
Thus, after reducing the daily output of what they carried during June, the company’s Bitcoin reserves fell from about 6,349 BTC to a total of 3,349 BTC. The company’s BTC reserves, which were 4,300 BTC at the start of the year, were significantly reduced as a result of this sale.
The data provided by the firm shows that Bitfarms can generate an average of 14 BTC each day, or roughly 1,260 BTC per quarter. Given that the corporation purchased 1,000 BTC for $43.2 million at the beginning of January, they can thus afford to sell at a loss. At the current price of about $20.6 million, the same quantity of Bitcoin could be acquired for less than half the price.
However, according to Bitfarms CFO Jeff Lucas, the company had to liquidate its shares in order to reduce its debt to Galaxy Digital LLC (Galaxy) from $66 million to $38 million as a result of the cryptocurrency market’s volatility.
“Given the extremely volatile markets, we have continued to take steps to improve liquidity and to deleverage and strengthen our balance sheet. Specifically, we have sold 1,500 more Bitcoin and are no longer HODLing our entire daily BTC production,” he said.
Lucas stated that although they are still optimistic about the long-term price of Bitcoin, they must concentrate on the company’s primary goals, which include maintaining their position as a top-tier mining operator and pursuing business expansion.
“We believe that selling a portion of our BTC holdings and daily production as a source of liquidity is the best and least expensive method in the current market environment,” he said.
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