Bitcoin mining company Bitfarms has announced that it has sold 3000 Bitcoins for about $62 million.
This reduces the company’s Bitcoin reserves from 6,349 coins to 3,349.
Jeff Lucas, CFO of Bitfarms said, “We believe that selling a portion of our BTC holdings and daily production as a source of liquidity is the best and least expensive method in the current market environment.”
The company also closed its new equipment financing with NYDIG, cutting down its expenses by $37 million.
The company has thus improved corporate liquidity by about $100 million.
John continued “While we remain bullish on long-term BTC price appreciation, this strategic change enables us to focus on our top priorities of maintaining our world-class mining operations and continuing to grow our business in anticipation of improved mining economics.”
Bitfarms used part of the fund raised to reduce their debt with Galaxy Digital from $66 million to $38 million.
Bitfarms uses 99% renewable energy via a long-term power contract and produces 14 BTC per day. This liquidity-enhancing move will not put the company under.
The crypto market has been taking a hit for weeks with the price of Bitcoin consistently falling. Industry giant Solana-based DeFi protocol Solend has started moving funds from a whale account to multiple decentralized and centralized lending venues to reduce the risk of contagion in the event of a liquidation.
