The miner the term “miner” can refer to both the person doing the mining and the device that is used to mine crypto. sold 3,000 BTC, nearly half of its hoard of the flagship cryptocurrency, as part of a strategy to rebalance its reserves amid falling prices.
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- Bitfarms sold almost half of its BTC to reduce debt and increase its liquidity.
- La empresa aún tiene 3.349 bitcoins, y produce 14 BTC diariamente.
- Miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. are feeling the pressure from falling prices in the market.
Amid price turmoil in the cryptocurrency market, cryptocurrency firm Bitfarms has opted to restructure its holding plan of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. in order to improve liquidity and reduce indebtedness.
The Canadian company, which is listed on the Toronto Stock Exchange, reported last week it sold a total of 3,000 bitcoins (BTC) for approximately USD $62 million to back part of a debt secured in the cryptocurrency. The sale accounted for nearly half of the total reserve of Bitcoin de Bitfarms which now stands at 3,349 BTC.
In a communiqué published this Tuesday, Bitfarms said the proceeds generated by the sale helped it increase its liquidity, while allowing the miner to reduce a credit line backed by Bitcoin de Galaxy Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. a USD $38 millones.
The Toronto-based miner also confirmed that the strategy raised its corporate liquidity to $100 million and that it closed a $37 million equipment financing deal with NYDIG. Bitfarms had previewed these announcements last week in a communiqué which was shared via his official Twitter account.
Bitfarms Executes Strategic Actions Increasing Financial Flexibility
– Enters New Equipment Financing Agreement with NYDIG for US$37 Million
– Reduces US$100 Million #BTC -backed Credit Facility to US$66 Million
???? More info: https://t.co/81p537ouOl
????$BITF #BitcoinMining pic.twitter.com/pVVEKNPGoS
– Bitfarms (@Bitfarms_io) June 17, 2022
Last week, as you recall CoinDesk the mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. company had reported selling 1,500 BTC to reduce its debt. This week’s announcement confirms that Bitfarms opted to double this sum, a move that reduced its holdings of Bitcoin . According to the report, the company currently has an average production of 14 BTC per day.
Bitfarms still believes Bitcoin will rise in the long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. run
The news comes at a time of great pressure for the miners and holders of the Bitcoin, that they fear in the face of a recession in the markets.
The flagship cryptocurrency fell below USD $20,000 last week, more than 70% below its all-time price high recorded in November. The situation is not much different for the rest of the altcoins as the global capitalization of cryptocurrencies has shrunk to less than $1 trillion, after reaching $3 trillion last year.
According to CoinDesk the fall in the price of Bitcoin has caused miners’ profit margins to decline, after many of the miners took on a lot of debt to finance their operations.
“ In consideration of the extreme volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. in the markets, we have continued to take steps to improve liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. and deleverage and strengthen our balance sheet. “, commented Jeff Lucas, CFO of Bitfarms in today’s press release.
According to CoinDesk , Bitfarms was one of the miners with a strategy of maintaining his daily production of bitcoins on its balance sheet, using loans and equity equity is the funds that would be returned to a company's shareholders if all of the company's assets were dissolved and all debts were paid off in the event of liquidation. offerings to finance expansion and day-to-day costs.
In April, when Bitcoin was trading at nearly double its current price, the company’s head of mining, Ben Gagnon, had expressed confidence for a rise in the flagship cryptocurrency. The long- and medium-term potential of Bitcoin “ is significantly higher “than the cost of capital capital is most commonly defined as the large sum of money you would use to invest. to borrow against cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. said in an interview at the time, as quoted by CoinDesk .
In his most recent statement, Lucas reiterated that at Bitfarms continue “ being optimistic about BTC’s long-term price appreciation “and that the change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. in holding strategy allows the company to maintain the integrity of the business while continuing to grow.
Since January 2021, we have been funding operations and growth through various financing measures. We believe that selling a portion of our BTC holdings and daily production as a source of liquidity is the best and least expensive method in the current market an area or arena, online or offline, in which commercial dealings are conducted. environment.
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Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva
