Bitfarms Sells 3,000 Bitcoin To Adjust HODL Strategy Amid A Bearish Market

Toronto-based crypto firm Bitfarms has sold a total of 3,000 Bitcoin (BTC) over the last seven days and adjusted its HODL strategy "to improve liquidity and strengthen its balance sheet."

According to a press statement released by the global self-mining firm, Bitfarms sold 3,000 Bitcoin for approximately $62 million. As of 1:29 a.m. ET, the price of 1 BTC was $20,500, as per CoinMarketCap (CMC).

Bitfarms has also closed on its deal worth $37 million in new equipment financing with NYDIG ABL LLC (NYDIG), a firm that delivers Bitcoin products across industries, from banking and insurance to fintech and nonprofits. As a result, the firm's corporate liquidity has improved by $100 million.

On the other hand, NYDIG and Deloitte announced a strategic alliance "to help companies of all sizes implement digital asset capabilities in their businesses."

“In consideration of extreme volatility in the markets, we have continued to take action to enhance liquidity and to de-leverage and strengthen our balance sheet. Specifically, we sold 1,500 more Bitcoin and are no longer HODLing all our daily BTC production,” said Bitfarms’ CFO Jeff Lucas.

Bitfarms' total BTC holdings amount to 3,349, inclusive of month-to-date production, which is currently averaging 14 BTC per day. As per the press statement, the firm is using a portion of the sale to "rebalance its indebtedness by reducing its BTC-backed credit facility with Galaxy Digital LLC (Galaxy) a further $28 million from $66 million to $38 million."

"Since January 2021, we have been funding operations and growth through various financing measures. 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," Lucas added.

As of June 20, Bitfarms held cash worth $42 million and 3,349 BTC (valued at approximately $68.6 million based on current rates).