According to Tradingview data, Bitcoin (BTC) has continued to rise since it fell below $18,000 on the 19th. It broke through the $21,000 mark at 9:00 last night, but then fell back again. As of the deadline, it was reported at $20,508, nearly 24%. Hourly rose 0.3%; ether (ETH) touched $1,194 overnight and was at $1,105 by press time, down 1.2% in the past 24 hours.
Although the market has rebounded slightly in recent days, according to Coindesk, analysts are still pessimistic about whether the market can continue to rise, pointing out that over the past eight months, the cryptocurrency market has been affected by global turmoil, rising inflation, and economic recession. Troubled by other factors, investors are still panicking and will remain defensive until there is solid evidence of a more lasting improvement in the economy.
Mining company Bitfarms stops stockpiling coins
At the same time, due to the recent slump in bitcoin prices, Canadian bitcoin mining company Bitfarms issued a press release on the 21st announcing that it has decided to adjust its HODL strategy to improve liquidity and strengthen its balance sheet. total price of about 3,000 bitcoins were sold.
Bitfarms also said that it had completed the previously announced $37 million financing for new equipment from New York Digital Investment Group (NYDIG), increasing the company’s liquidity by about $100 million. Digital’s bitcoin secured line of credit was reduced from $66 million to $38 million.
Bitfarms sold the equivalent of half the company’s bitcoin holdings in one week. According to the press release, as of June 20, 2022, Bitfarms held $42 million in cash and 3,349 bitcoins, worth about $67 million, and Bitfarms currently mines about 14 bitcoins per day.
Jeff Lucas, chief financial officer of Bitfarms, said that in view of the extreme volatility in the market and the decision to take actions to improve liquidity, deleverage and strengthen the company’s balance sheet, Bitfarms no longer hoards all the bitcoins that are mined daily, although it is still optimistic about bitcoin’s long-term rise. , but the change in strategy will allow the company to focus on maintaining a world-class mining operation and continuing to expand its business.
Jeff Lucas further stated: Since January 2021, the Company has been funding the business and growth through various financing initiatives. We believe that in the current market environment, selling a portion of Bitcoin holdings and daily production as a source of liquidity is the best and least expensive method.
Many mining companies began to sell Bitcoin
According to “Bloomberg”, Bitfarms became the first miner to announce that it would no longer hold coins. In fact, with the recent plunge in the price of coins, many miners have had to start selling Bitcoin. Core Scientific, Riot, Argo Blockchain Plc Mining companies such as these have recently sold 2,598, 250 and 427 bitcoins respectively.
According to data compiled by research firm ArcaneCrypto, the top 28 listed miners sold a whopping 4,271 bitcoins in May, a 329% surge from April, and they are likely to sell more in June. large amount of bitcoin.
It is worth noting that according to CoinMetrics, miners are one of the largest Bitcoin whales, holding a total of about 800,000 bitcoins, of which listed miners hold 46,000 bitcoins. If miners are forced to liquidate their holdings A large part of the price of Bitcoin is likely to fall further.
Although mining companies began to sell virtual currency assets to reduce leverage and maintain stable cash flow, they also continued to be optimistic about the prospects of the mining business. In addition, the current cost of mining machines is also at a historically low level, which is a good opportunity for both companies expanding production and new companies interested in participating.
Post time: Aug-21-2022