One of the largest Bitcoin mining companies in Canada to sell its holdings
Mining companies are stepping up the sale of their Bitcoin holdings as the first cryptocurrency shows too much volatility in the market
A global Bitcoin self-mining company, Bitfarms, based in Canada, is now “To adjust its HODL strategy” according to the press release to add more liquidity and strengthen the balance sheet.
The company has reportedly sold 3,000 BTC for about $62 million at an 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 closed, the company’s total Bitcoin holdings remained at 3,349 Bitcoins, with 14 BTC being added to the balance every day. In addition, the Canadian Bitcoin mining company will continue to reduce its BTC-backed credit facility with Galaxy Digital LLC from $66 million to $38 million.
But despite the pre-Galaxy Digital debt and illiquid balance sheet, the main reason behind the operation was the extremely high volatility in the cryptocurrency market that caused Bitcoin to fall below its all-time high of $19,000 in 2017.
As of now, the company will no longer hold its daily-produced assets HODL, meaning Bitfarms will most likely create constant selling pressure in the market to provide more liquidity to its balance sheet by increasing the percentage of stablecoins or fiat currencies in its portfolio.
But despite the sale of the digital gold, the company said it remains optimistic about the BTC price in the long term, and the strategic change does not change Bitfarm’s focus on providing “world-class” Bitcoin mining solutions and preparing to improve the crypto economy.
As of the summer of 2022, the company has $42 million in cash or alternative liquidity and more than 3,000 BTC on its balance sheet.