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A recent market crash that has reduced miners' profitability has led the largest Canadian cryptocurrency mining company, Bitfarms, to abandon its hodling strategy and sell 3,000 bitcoins for $62 million. Despite the sale, Bitfarms' CFO, Jeff Lucas, stated that the company is still bullish on long-term price hikes and concentrating on maintaining BTC liquidity through its mining activities to take advantage of more robust economic conditions. https://twitter.com/Bitfarms_io/status/1539226451295215620 He added that the company had been using various financial strategies to finance expansion and operations since January 2021, but that in the present market, selling bitcoin is the most cost-effective way to get liquidity. The corporation received a $100 million injection of capital from a recent sale and $37 million in finance for new equipment. Bitfarms used a portion of the funds to pay off $28 to $38 million of their $66 million debt to Galaxy Digital LLC. The business mines 14 bitcoins per day on average. https://twitter.com/Bitfarms_io/status/1539226200865914882
Stock Prices In The Mining Industry Suffer
The instability in the cryptocurrency market has forced mining businesses to reconsider their operating and hodling tactics. Toronto-based Bitfarms is one of many mining titans facing diminishing cash inflow via stock markets as share values decline. The mining revenue from freshly created coins and transaction fees dropped to an almost yearly low of $14.4 million on June 16, 2022, despite Bitfarms using 99 percent renewable energy via a long-term power contract and being less susceptible to energy prices eating into revenues. On June 27, 2021, with slightly over $13 million in revenue, attained the previous low point. Smaller miners like Xive had had to halt some operations when bitcoin dipped below $25,000, according to Didar Bekbaouov, the co-founder of the company. Bitfarms have fixed energy expenses, and, in the instance of Bitfarms, 3,349 bitcoins are on its balance sheet.