Bitfarms abandons Bitcoin-accumulation strategy

Canadian publicly traded mining company Bitfarms has tweaked its strategy for storing mined Bitcoin in order to “increase liquidity and strengthen its balance sheet”.

According to the пресс-релизу, over the past week the firm sold a total of 3,000 BTC for about $62 million, and also paid off a $37 million NYDIG equipment-financing loan.

Part of the proceeds, $28 million, was used to reduce the Galaxy Digital credit line.

The company had 3,349 BTC in reserve as of June 20, in addition to daily production of about 14 BTC. Fiat reserves stand at around $67 million.

“Given the extreme volatility in the markets, we have continued to take steps to increase liquidity, reduce the share of borrowed funds, and strengthen our balance sheet. In particular, we sold another 1,500 BTC and no longer hold all of the cryptocurrency we mine on a daily basis,” said Bitfarms’ Chief Financial Officer Jeff Lucas.

He added that the company remains confident in the long-term prospects for Bitcoin’s price. According to him, the changes to the strategy will allow focusing on two priorities: mining operations and expanding the business in anticipation of an improved macro environment.

“Since January 2021 we have financed activity and growth through various measures. We are considering selling part of our BTC reserves and daily mining output as a liquidity source. This is the best and least costly method under current market conditions,” said Lucas.

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.

CEO Bitfarms Emiliano Grodzki then stressed that the strategy is to accumulate Bitcoin at the lowest cost and in a short time.

In April Arcane Research analysts included Bitfarms in the top five most overvalued by the market public mining companies, according to their metric. Marathon Digital Holdings led the ‘anti-ranking’.

Arcane Research also noted that Bitfarms buys electricity at prices above the market average.

The company operates seven facilities in Quebec (Canada), one in Washington state (USA), and one more in Paraguay. The facilities are powered 99% by clean hydroelectric energy.

As reported earlier, amid Bitcoin’s price decline Marathon Digital Holdings confirmed their commitment to a cryptocurrency-accumulation strategy.

MicroStrategy holds the largest reserves of digital gold among public companies. Its head Michael Saylor also assured that the firm will continue to hold cryptocurrency going forward.

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