Bitfarms abandons bitcoin accumulation strategy

Bitfarms abandons bitcoin accumulation strategy

Bitfarms Abandoned Bitcoin Accumulation Strategy

Canadian public mining company Bitfarms has made adjustments to its bitcoin storage strategy to «increase liquidity and strengthen balance sheet».

According to a press release, over the last the week the firm sold a total of 3,000 BTC for approximately $62 million, and also repaid a $37 million loan from NYDIG to purchase equipment.

The company used part of the proceeds of $28 million to reduce a credit line from Galaxy Digital.

The company has 3349 BTC left (as of June 20) in addition to daily mining of approximately 14 BTC. Fiat reserves are about $67 million

«Given the extreme volatility in the markets, we have continued to take steps to increase liquidity, deleverage and strengthen our balance sheet. In particular, we sold another 1,500 BTC and no longer store all the daily mined cryptocurrency», — said Jeff Lucas, CFO of Bitfarms.

He added that the company is confident in the long-term prospects for the rise in the price of bitcoin. According to him, changes in strategy will help focus on two priorities: cryptocurrency mining operations and business expansion in anticipation of an improvement in the economic situation.

«C January 2021, we fund operations and growth through a variety of measures. We consider selling a portion of our BTC holdings and daily mining as a source of liquidity. This is the best and least expensive method in the current market conditions,” Lucas noted.

In January 2022, the company bought 1,000 BTC worth $43.2 million. At that time, the acquisition increased the cryptocurrency balance by 30% to 4,300 BTC.

Bitfarms CEO Emiliano Grodsky then emphasized that « is to accumulate bitcoin at the lowest cost and in the shortest possible time».

In April, Arcane Research analysts ranked Bitfarms as one of the top five most overvalued public mining companies in the market, according to a metric they developed. The leader «anti-rating» turned out to be Marathon Digital Holdings. 

At the same time, the analytical firm noted that Bitfarms buys electricity at prices above the average market.

The company operates at seven facilities in the province of Quebec (Canada), one in Washington state (USA) and one in Paraguay. Businesses are 99% powered by clean hydropower.

Bitfarms abandoned the Bitcoin accumulation strategy

One of the Bitfarms data centers. Data: Twitter.

Recall that against the background of the fall in the price of bitcoin, Marathon Digital Holdings confirmed its commitment to the cryptocurrency accumulation strategy.

MicroStrategy owns the most significant reserves in digital gold among public companies. Its head, Michael Saylor, also assured that the firm will continue to keep the cryptocurrency further.

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