Bitfarms sold 3K Bitcoin as part of strategy to improve liquidity and pay debts

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Canadian miner Bitfarms sold nearly $62 million worth of Bitcoin (BTC) in June, using the proceeds from the sale to reduce its debt.

In an announcement on Tuesday, Bitfarms said it has sold 3,000 bitcoins in the past seven days, roughly 47% of the crypto miner’s holdings of about 6,349 BTC. According to the company, it will use the $62 million in BTC sales to “rebalance its indebtedness by reducing BTC-backed credit facilities with Galaxy Digital.” The cryptocurrency sold appears to include 1,500 BTC Bitfarms used to reduce its credit facility from $100 million to $66 million in June, bringing its debt down to $38 million at press time.

According to Bitfarms CFO Jeff Lucas, the miner “no longer deals with all the bitcoins it produces daily — roughly 14 BTC — instead opting to “take measures to boost liquidity, remove leverage, and strengthen” the company’s balance sheet. Bitfarms said it has concluded Also a $37 million deal with NYDIG to fund equipment, raising the company’s liquidity to nearly $100 million.

“While we remain optimistic about Bitcoin price hikes in the long term, this strategic change enables us to focus on our top priorities of maintaining world-class mining operations and continuing to grow our business in anticipation of improved mining economics,” Lucas said. “We believe that selling a portion of the Bitcoin holdings and daily production as a source of liquidity is better and less expensive in the current market environment.”

Bitfarms had 4,300 BTC reported as of January, worth roughly $177 million when the crypto asset was over $41,000. Founder and CEO Emiliano Grodzki said at the time that the company’s strategy was to “accumulate the largest number of bitcoins at the lowest cost and in the fastest time.”

Related: Bitcoin vs. BTC Mining Stocks: The Head of Mining Bitfarms Explains the Key Differences

The move from Bitfarms came amid intense price volatility between major cryptocurrencies including BTC and Ether (ETH). On Saturday, the price of bitcoin fell below $18,000 for the first time since December 2020, but has since returned to over $21,000 at press time. ETH price saw a similar drop below $1,000 on Saturday – an 18-month low – before climbing above $1,200 on Tuesday.

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