ICYMI: Bitfarms gives up 3,000 BTC to pay down $100 million loan from Galaxy Digital
Bitcoin miner Bitfarms announced the sale of 3,000 bitcoin to pay down part of a $100 million loan with Galaxy.Bitcoin miner Bitfarms paid down a $100 million bitcoin-backed loan with the sale of 3,000 BTC in the last week while securing an additional $37 million facility collateralized by mining machines.
Bitfarms' move to sell some of its daily production, even though bitcoin prices have fallen in recent days, is a decisive pivot away from its previous strategy of holding onto its mined bitcoins. In 2021, the company mined a total of 3,453 BTC. At the time of publication, Bitcoin's price was around $21,500.
“In addition to lowering our interest expense, this $34 million reduction in borrowing gives us the ability to utilize more of our BTC holdings strategy as it frees up BTC that would otherwise be used to collateralize this credit facility,” said CFO Jeff Lucas. On May 31, Bitfarms reported that it owned 6,075 BTC. Their holdings now stand at 3,349 BTC, taking into account the full 3,000 BTC sold and the added June production at an average of 14 BTC per day.
Lucas said the company was now"better positioned" to take advantage of possible acquisitions or expansion opportunities resulting from current market conditions.acquisition of 1,800 bitcoin miners