Bitcoin mining stock Bitfarms updates its ‘HODL Strategy’

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Written on Jun 21, 2022

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Bitfarms sold 3,000 BTC for about $62 million, with current holdings at 3,349 BTC.
The Bitcoin miner said it paid $38 million towards a BTC-back credit facility with NYDIG.
Bitfarms’ daily BTC production is approximately 14 bitcoins, which adds to company liquidity

Bitcoin mining company Bitfarms Ltd. (NASDAQ: BITF) is changing its HODLing as it looks to “improve liquidity and strengthen its balance sheet.”

The Toronto-based miner announced this via a press release on Tuesday.

Bitfarms updates HODLing strategy

The change in strategy has seen the company sell nearly half of its BTC holdings over the past week, with 3,000 bitcoins sold for roughly $62 million in that time. Out of that amount, $28 million went towards rebalancing its $66 million BTC-backed loan with Galaxy Digital. The loan facility has reduced to $38 million, the firm said in the press release.

Despite no longer HODLing 100% of its mined BTC, Bitfarms says it remains bullish. Jeff Lucas, the firm’s CFO noted this in a tweet.

????️ Jeff Lucas, CFO: “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 (@Bitfarms_io) June 21, 2022

Bitfarms holds 3,349 BTC

Bitfarms revealed that it held $42 million in cash and 3,349 BTC worth about $67 million as of Monday, 20 June, 2022. The company’s 14 BTC daily production adds to the liquidity.

The firm’s corporate liquidity is also helped by the $37 million equipment financing deal with NYDIG, which it says was closed last week. In total, Bitfarms liquidity currently stands around $100 million.