Mining companies are intensifying their Bitcoin holdings sales as first cryptocurrency shows too much volatility in market
A global Bitcoin self-mining company, Canada-based Bitfarms, is currently “adjusting its HODL strategy,” according to a press release to further increase liquidity and strengthen its balance sheet.
One of the biggest Bitcoin mining firms in Canada to start selling its holdings
Reportedly, the company sold 3,000 BTC for around $62 million with an average price of $20,600. The main reason behind this activity was the company’s inability to provide capital 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 miner will reduce the BTC-backed credit with Galaxy Digital LLC from $66 million to $38 million. But despite the debt in front of Galaxy Digital and a illiquid balance sheet, the main reason behind this activity is the extreme volatility in the crypto 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 on a daily basis which means that Bitfarms will most likely create constant selling pressure in the market to provide more liquidity to the board. balance their accounts by increasing the percentage of stablecoins or fiat currencies in their portfolios.
But despite selling digital gold, the company remains bullish on BTC price in the long term. The change of strategy does not change Bitfarm’s focus on providing “classic” Bitcoin mining solutions. world” and is ready to improve the crypto economy.
As of Summer 2022, the company holds $42 million in cash or alternative liquid assets and over 3,000 BTC on their balance sheet.
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