Bitfarms Sells 3,000 Bitcoin for $62 Million to Boost Liquidity and Pay Off Loans
Canadian bitcoin mining startup Bitfarms (NASDAQ: BITF) has made a significant strategic shift, selling 3,000 Bitcoin (BTC) in the last seven days to increase liquidity and strengthen its balance sheet. The Toronto-based crypto firm generated approximately $62 million from the transaction, using the revenues to pay down debt and secure an additional $37 million facility.
In a Tuesday announcement, Bitfarms revealed it had sold roughly 47% of its Bitcoin holdings, totaling 3,000 BTC. This move represents a departure from its previous "hodling" strategy, reflecting a proactive approach to navigate recent market volatility.
Why Did Bitfarms Sell Its Bitcoin?
Bitfarms has ditched its “hodling” strategy and begun selling its mined bitcoin (BTC) to pay off loans and shore up its balance sheet. The primary reason for the sale was to pay back a $100 million bitcoin-backed loan with the sale of 3,000 BTC in the last week to Galaxy Digital. Bitfarms said that the financial liquidity will help them in this.
The company aims to improve its financial position and ensure operational stability amidst a challenging cryptocurrency market. Canadian crypto mining giant Bitfarms has reneged on its hodling strategy and is instead selling 3,000 bitcoins for $62 million amid a recent market rout squeezing.
Impact on Bitfarms and the Crypto Market
Bitfarms\' decision to sell a substantial portion of its Bitcoin holdings highlights the pressures faced by crypto mining companies in the current economic climate. The recent liquidation of 3000 BTC comes in order to pay back the $100 million loan to Galaxy Digital. By proactively addressing its debt and bolstering its liquidity, Bitfarms aims to position itself for long-term success in the competitive Bitcoin mining industry.