Mining companies are intensifying their Bitcoin holdings sales as first cryptocurrency shows too much volatility on market
Reportedly, the company has sold 3,000 BTC for approximately $62 million at the average price of $20,600. The main reason behind the operation was the company’s inability to provide funds to finance the equipment.
After the deal was done, the company’s total Bitcoin holdings remained at 3,349 Bitcoins with 14 BTC added to the balance every day. Additionally, the Canadian Bitcoin mining company will proceed to reduce the BTC-backed credit facility with Galaxy Digital LLC from $66 million to $38 million.
But despite the debt before Galaxy Digital and the illiquid balance sheet, the main reason behind the operation was the extremely high volatility on the cryptocurrency market that caused Bitcoin’s drop below the 2017 all-time high of $19,000.
From now on, the company will no longer HODL its assets produced daily, which means that Bitfarms will most likely create constant selling pressure on the market to provide more liquidity to its balance sheet by increasing the percentage of stablecoins or fiat currencies in their portfolio.
But despite selling the digital gold, the company stated that it remains bullish on the long-term BTC price, and the strategic change does not change Bitfarm’s focus on providing “world-class” Bitcoin mining solutions and getting ready to improve crypto economics.
As of Summer 2022, the company holds $42 million in cash or alternative liquid assets and more than 3,000 BTC on their balance sheet.