Crypto mining firm Bitfarms sold 3,000 BTC for a little over $62 million to settle the firms’ debts and improve liquidity. The Canadian crypto mining entity held over 6,349 BTC. In an announcement on Tuesday, the company stated that it had sold over 47% of its BTC holdings.
The 47% accounts for 3,000 bitcoin that were sold over the span of seven days. The company stated that the $62 million from the sales would be utilized to “rebalance its indebtedness by reducing its BTC-backed credit facility with Galaxy Digital LLC.”
Bitfarms closed a previous $37 million in equipment financing using the sale proceeds. The firm also lowered the credit facility using the sale proceeds to reduce it from $100 million to $66 million in June. Overall, Bitfarms managed to bring down its debt to $38 million.
Bitfarms is adjusting its HODLing strategy
Jeff Lucas, CFO of Bitfarms, stated that the company is changing its HODLing strategy and is no longer holding all of its daily BTC production. The decision is slightly different from its original decision to HODL all of its mined bitcoins.
“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.”
Jeff Lucas, CFO of Bitfarms
According to Jeff Lucas, the decision is due to the extreme market conditions that prompted them to alter the strategy. Jeff stated that this would subsequently enhance the liquidity and strengthen the balance sheet.
“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.”
As per the reports, till June 20, 2022, Bitfarms held $42 million in cash and 3,349 BTC.