Bit Farms – a bitcoin mining firm – is reducing its hodling strategy and has sold roughly half the bitcoin stash it owns as a means of reducing its debt.
Bit Farms Parts with Nearly 50% of Its Bitcoins
At the time of writing, Bit Farms has a loan in play that’s worth approximately $66 million. Prior to selling much of its bitcoin, the loan was worth $100 million. This is a testament to how much bitcoin has fallen in price in recent weeks, with the world’s number one digital currency by market cap now down roughly 69 percent from its all-time high of $68,000 per unit last November.
Until now, Bit Farms held a huge stash of bitcoin in its reserves. This currency was allowed to simply sit idly by as prices continued to show some form of remaining stable through the beginning of 2022, though this has indeed been one of the ugliest years for the digital currency space, and in many ways, it’s putting 2018 to shame, which up to this point was largely considered the worst year for crypto.
Prior to the sale, Bit Farms held more than 6,300 bitcoin units in its stash, though by parting with as many as it has, that stash has fallen to about 3,349 units. Like many crypto mining firms, Bit Farms has been suffering due to the crypto crash not necessarily because of prices, but because there are many people who have either slowed their mining operations or ended them fully.
As a result, Bit Farms has less people to sell or distribute equipment to, and the company is beginning to experience some rather slow activity. Chief financial officer Jeff Lucas explained in a recent statement:
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.
The company, naturally, isn’t happy that it’s had to part with part of the bitcoin it worked so hard to accumulate. At the same time, representatives see this as simply a bump in the road. They are convinced bitcoin and major cryptocurrencies will make a comeback in future months and years, and this is simply a setback that’s placing the company in an uncomfortable, yet temporary position.
Mike Novogratz Doesn’t Think BTC Is Dead
The company’s loan was issued through Galaxy Digital, a hedge fund run by billionaire investor and crypto bull Mike Novogratz. In a recent interview, Novogratz acknowledged that a drop to $20K for bitcoin was indeed scary, though he believes the world’s primary form of crypto has ultimately bottomed out and that things probably won’t get worse from here.
Bit Farms is based in Canada and saw its stock shares rise nearly seven percent on the Nasdaq recently.
Source: https://www.livebitcoinnews.com/bit-farms-sells-nearly-half-its-bitcoin-stash/