Bitfarms mining company confirmed the sale of 3000 BTC

A bitcoin mining firm increased its liquidity by $100 million

21.06.2022 - 13:50

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What’s new? Mining company Bitfarms Ltd. confirmed the sale of 3 000 bitcoins worth about $62 million and closed a $37 million funding round to buy new equipment. The company also increased its liquidity by $100 million. Bitfarms has a total of 3 349 BTC on its balance sheet, including last month's production, which averages about 14 BTC per day, according to the press release.

Bitfarms’ press release

What does the Bitfarms representative say? The company's CFO, Jeff Lucas, said the firm takes into account the strong market volatility, so it continues to take steps to increase liquidity and reduce its debt load. The company used part of its profits to repay a bitcoin-backed loan from investment firm Galaxy Digital, reducing it from $66 million to $38 million.

Lucas added that the sale of some BTC will allow Bitfarms to focus on maintaining its mining operations, while the company still expects the asset to rise in the long term.

What is known about Bitfarms? The bitcoin mining company was founded in 2017. Bitfarms' data centers are more than 99% powered by hydropower. Seven of them are located in Québec, one in Paraguay, and one in Washington state. The company's shares trade on the Nasdaq US Stock Exchange and Canada's TSX-V under the ticker BITF at $1,39 as of June 21.

In May, miners transferred 195 663 BTC to cryptocurrency exchanges, which was the biggest monthly flow since January 2022. Based on the average bitcoin price in May ($32 000), the total value of assets transferred to the platforms was around $6,3 billion. According to a report by the mining company Compass Mining, cryptocurrency mining has become less profitable and its participants have started selling their assets on the open market to cover power expenses.

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