Bitcoin Mining Giant Bitfarms Sold 3,000 Btc to Reduce Debt

    According to the press release, Bitfarms sold 3,000 BTC in the past week. Coincidentally, at the same time, Bitcoin price also recorded a bottom at $17,700.

    On June 21, Bitcoin miner Bitfarms announced to sell almost 50% of its BTC stash for $62 million, which equates to an average price of $20,666 USD/BTC. This decision caused the company’s reserves to be reduced from around 6,349 BTC to a total of 3,349 BTC. Also a few days ago, BTC price broke down 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 USD. Averagely, this company mines 14 Bitcoins per day. Last week, Bitfarms said it sold 1,500 BTC to reduce its debt from $100 million to $66 million. With the proceeds of this Bitcoin sale, Bitfarms continues to reduce its BTC-backed credit with Galaxy Digital LLC (Galaxy) from $66 million to $38 million.

    “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,” Bitfarms CFO Jeff Lucas said.  “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.” 

    Bitfarms’ move came amid extreme price volatility among major cryptocurrencies including BTC and Ether (ETH). On Saturday, Bitcoin price dropped under $18,000 for the first time since December 2020 but then returned to above $21,000 at the time of publication. The ETH price experienced a similar decline to under $1,000 on Saturday — an 18-month low — before rising to more than $1,200 on Tuesday.

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