Mining firms are ramping up sales of their Bitcoin holdings as the first cryptocurrency exhibits excessive market volatility. According to the press release, Bitfarms, a global Bitcoin self-mining firm based in Canada, is now “adjusting its HODL strategy” to offer more liquidity and strengthen its balance sheet.
According to reports, the firm sold 3,000 BTC for $62 million at an average price of $20,600. The firm’s failure to offer funding to finance the equipment was the primary reason for the operation.
The company’s total Bitcoin holdings remained at 3,349 Bitcoins after the sale, with 14 BTC added to the balance every day. In addition, the Canadian Bitcoin corporation will cut the $66 million BTC-backed credit facility with Galaxy Digital LLC to $38 million.
Given the debt owed to Galaxy Digital and the firm’s illiquid financial sheet, the major reason for the action was the cryptocurrency market’s excessive volatility, which caused Bitcoin to fall below its all-time high of $19,000 in 2017.
Bitfarms will no longer HODL its daily assets, which means the firm will most likely increase the ratio of stablecoins or fiat currencies in its portfolio to create constant selling pressure on the market to provide additional liquidity to its balance sheet.
Despite selling the digital gold, Bitfarm indicated that it is still bullish on the long-term BTC price and that the strategic shift would not affect the company’s emphasis on offering “world-class” Bitcoin mining solutions and preparing to improve crypto-economics.
The firm has $42 million in cash or alternative liquid assets and over 3,000 BTC on its balance sheet as of Summer 2022.
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