Krypto Miner Bitfarms sells half of his Bitcoin to reduce debts and increase liquidity

Krypto Miner Bitfarms sells half of his Bitcoin to reduce debts and increase liquidity

Bitfarms has his "

The Toronto-based cryptocurrency miner sold 3,000 BTC ($ 62 million) in the past week announced on Tuesday. Bitfarm's "Hodlet no longer our entire daily BTC production," said Jeff Lucas, the CFO of the miners.

"We believe that the sale of part of our BTC stocks and the daily production as a source of liquidity in the current market environment is the best and cheapest method," he added.

Since May, BTC stocks of Bitfarms have shrunk by almost half to 3,349 BTC ($ 67.5 million). The company currently exaggerates around 14 BTC ($ 282,000) per day in the previous month.

Bitfarms said it used part of this revenue to reduce its Bitcoin-supported credit facility with the Digital Asset Bank Galaxy digitally by 42 %, now to $ 38 million.

In fact, the sale of Bitcoin to cover expenses for cryptocurrency vernacles is a matter of course, especially for those who had taken out loans last year to finance their quick expansion.

The step of Bitfarms reflects the competitor Riot Blockchain, who has since sold 700 BTC for over $ 17.5 million Marsch . In May, Hugh Gallagher, Chief Financial Officer from Marathon Digital, said that this was also possible considering a part of the bitcoins that thinks for the financial management or general expenses.

Bitcoin-Miner also unloaded their stocks faster than usual in May, according to Jaran Mellerud, analyst at arcane research.

Arcane found that the 28 best listed miners sold 4,271 BTC last month, which corresponds to a monthly leap of 329 % - and they will probably sell more in June, Bloomberg reported

The fear of infection by the asset liquidations of Three Arrows Capital has pulled crypto prices down, whereby Bitcoin reached deep stalls of $ 17,600 this week before it recovered over $ 20,000. According to the data of the leading digital asset was last traded at $ 20,400 on Wednesday morning Blockworks research Almost 60 % under its value at the beginning of the year.

crypto mining shares are generally closely correlated with the Bitcoin prices. Riot and marathon's share prices - the two largest public mining companies - have so far broken up by 80 % this year, while Bitfarms fell by 73 %.

The feeling of euphoria that made Bitcoins all -time high of $ 68,900 in November 2021 is currently missing, said Brian Gould, Head of Trading at Capital.com.

"Crypto dealers had to take a cold shower, and the structure of this euphoric momentum to revive the upward trend will require a lot of energy and influence that we do not see," he said.

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The contribution Krypto Miner Bitfarms sells half of its Bitcoin to reduce debts, increase liquidity is not financial advice.