Saturday, August 2, 2025

Latest

Bitfarms Forced To Sell Additional Bitcoin Due To Crypto-Backed Credit Facility

It appears our analysis last week on Bitfarms Ltd (TSX: BITF) was close to being right on the money. In light of the continued fall in the value of bitcoin, the firm this morning announced that it has been forced to review its current “HODL” strategy for the cryptocurrency.

The company has evidently again reduced its current bitcoin holdings, selling off an additional 1,500 bitcoin over the course of the last week, bringing total sales to 3,000 bitcoin. The firm last week had indicated it sold 1,500 bitcoin at an estimated figure of $22,666 per coin, to settle $34.0 million in bitcoin-backed debt.

Total proceeds from the sale of 3,000 bitcoin is said to total $62.0 million, implying that the second tranche of sales amounted to roughly $28.0 million, equating to an average price per bitcoin of $18,666. The company now has just 3,349 bitcoin remaining in its holdings following the sale, down from 6,075 at the end of May.

In connection with the sale, $28.0 million has been applied to the bitcoin-backed facility currently outstanding with Galaxy Digital, reducing the debt down to $38 million, and providing the company with some breathing room on this debt. At $20,000 bitcoin, its estimated a total of 2,717 bitcoin are required to be pledged to meet collateral requirements.

“In consideration of extreme volatility in the markets, we have continued to take action to enhance liquidity and to de-leverage and strengthen our balance sheet. Specifically, we sold 1,500 more Bitcoin and are no longer HODLing all our daily BTC production,” commented the firms CFO Jeff Lucas.

The company reportedly has a cash position of $42 million at the current time, along with $67 million worth of bitcoin at $20,000 bitcoin. Notably, $54.3 million worth of bitcoin is required to be pledged against its outstanding loan with Galaxy Digital based on current margin requirements.

Bitfarms last traded at $1.74 on the TSX.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

AngloGold Buys Another Gold Junior! Augusta Gold Acquired For $197 Million

Another Gold Deal! Aris Mining Sells Assets To McFarlane

Royal Gold Goes Big | $3.5 Billion Sandstorm Acquisition

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

CME Group Launches Micro-Sized Bitcoin, Ether Options

CME Group has expanded upon its cryptocurrency offerings, this time launching options for its Micro...

Monday, March 28, 2022, 11:32:00 AM

Bitfarms: Recent M&A Transaction Highlights Company’s Valuation

Last week, Cleanspark (NASDAQ: CLSK), a publicly listed microgrid energy software company, acquired the private...

Monday, December 14, 2020, 12:07:53 PM

Bitfarms Shrugs Off Weak Bitcoin Pricing In Q4, Posts Positive Adjusted EBITDA

On March 21, Bitfarms Ltd. (NASDAQ: BITF), one of the world’s leading Bitcoin miners, reported...

Sunday, March 26, 2023, 01:31:00 PM

Galaxy Digital Sees Assets Under Management Jump 23.5% In July

Galaxy Digital (TSX: GLXY) has seen a strong rebound in total assets under management. The...

Monday, August 8, 2022, 09:21:10 AM

Bitfarms: Is There Further Downside Risk To This Crypto Miner?

On May 16, Bitfarms Ltd. (TSX: BITF) reported solid 1Q 2022 earnings. The company reported...

Monday, May 23, 2022, 09:00:00 AM