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How is Bitfarms holding up amidst the market crash?

www.thecoinrepublic.com 25 June 2022 04:12, UTC
Reading time: ~2 m

Bitcoin miner giant Bitfarms has also seemed to get affected due to the market crash, just like other crypto firms. 

From top cryptocurrencies to top crypto firms, the recent market crash has ended up impacting almost all of them. Frequently reports or news come out stating either their losses or their plans to recover the losses, etc. Joining the ongoing trail, one of the leading crypto mining companies, Bitfarms has also taken some actions. 

Argentinian company, Bitfarms that operates in Canada, announced on 21st June about an adjustment that it anticipates to bring in its HODL strategy that it expects could improve liquidity of the company. As per the press release, Bitfarms has sold about 3,000 bitcoin from its bitcoin reserves last week that equated to about $63 million. This action from the crypto mining giant came in the wake of efforts in order to improve its liquidity by $100 million. 

Doing so, the bitcoin (BTC) reserve of Bitfarms got reduced from its holdings of 6,349 bitcoin to 3,349 bitcoin remaining in its bitcoin reserve. After the recent sale of bitcoin, the company has only left with bitcoin in its reserves that is even less than its total, 4,300 bitcoins at the beginning of this year. 

As per the official data shared by the crypto mining company, it is currently producing 14 bitcoin (BTC) per day on an average, as it generated almost 1,260 bitcoin (BTC) in a quarter. Since the company bought 1,000 bitcoin (BTC) at the beginning of this year for about $43.2 million, it can now afford to sell them even at a loss. Not surprising that if Bitfarms purchased the same amount of bitcoin right now, it would have cost it even less than half of its price, for just $20.6 million, given the current price. 

CFO of BitFarms, Jeff Lucas said that given volatility in the crypto market, the crypto mining company had come up at the situation where it needed to sell its bitcoin holdings for several seasons. One such factor as Lucas explained is reducing the debt of $66 million that the company has owed to Galaxy Digital LLC. 

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