Bitfarms breaks its piggy bank and sells half of its BTC

A painful sale – Bad weather for all the players in the cryptosphereinclude the minors. Even particularly strong crypto-mining firms – like NASDAQ-listed Bitfarms in May 2021 – find themselves in trouble. hard. To the point of having to sell their precious bitcoins (BTC).

A reluctant sale to replenish the fund

Until May 2022, everything was going pretty well for crypto miners from Bit Farms. Just a few weeks ago, they even proudly announced that they had broken their monthly BTC production record. The crypto-mining company had thus succeeded in accumulating a fabulous treasure of 6,075 BTC !

But with Celsius blocking withdrawals and the serious difficulties of the Three Arrows Capital (3AC) fund, Bitcoin prices fell under $20,000 (before rising above, at the time of writing).

It is therefore by press release published this June 21, 2022 that Bitfarms had to break the bad news. The company is forced to review its “HODL strategy” (custody) of bitcoins. This is to improve its liquidity and strengthen its balance sheet. These are so 3,000 BTC who have been sold unwillingly.

“Over the past week, Bitfarms has sold a total of 3,000 bitcoins for approximately $62 million (…) This brings the total number of BTC held to 3,349, including production since the beginning of the month [de juin], which is currently around 14 BTC per day on average. »

Excerpt from Bitfarms press release

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Funding of $37 million as a lifeline

In the same press release, the group NYDIG provided new funding from $37 million at Bitfarms. This in order toto acquire additional mining equipment.

Bitfarms was also able to reduce its to borrow of $66 millionguaranteed by BTC, and contracted with Digital Galaxy. Wishing it to $28 millionthis loan therefore now amounts to $38 million.

“In consideration of the extreme market pullback, we have continued to take steps to improve our liquidity, clean up our debts and increase our balance sheet. (…) Although we remain optimistic about BTC price appreciation in the long term, this strategic change allows us to focus on our main priorities, namely maintaining our crypto-mining operations. (…)”

Jeff Lucas, Chief Financial Officer (CFO) of Bitfarms

Even if the situation is complicated, it is still far from hopeless on the side of Bitfarms. By the way, the crypto-mining company is far from the only one to suffer a heartbreak by selling his precious bitcoins. Even before the recent Celsius/3AC cases, many miners had to reluctantly sell their cryptocurrency, after the disaster caused by Earth (LUNA) and its stablecoin UST.

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