Bitfarms sells bitcoins to reduce liabilities and enter South America

The mining company sold 2.595 thousand BTC in Q3, while it mined 1.515 thousand BTC.
Bitfarms mining company chose to sell more bitcoins in Q3 (2.595 thousand BTC) than it mined during the same time (1.515 thousand BTC). By doing so, the company decided to reduce its own bitcoin reserve, explaining that it is directing the funds to reduce the overall debt load on the business.
This move by the mining company, on the one hand, indicates that Bitfarms is bringing the company into a more financially stable position and intends to continue its operations to wait for a bitcoin bull market. Thus, the company is developing strategy outlets with bitcoin mining in South America, investing in mining equipment accordingly.
On the other hand, the sale of bitcoins in July and September suggests that Bitfarms believes that at that time the price of the cryptocurrency has not yet reached the “bottom” in this “bearish” market cycle.
Bitfarms still has $55 million in loans, with bitcoin miners as collateral, and $23 million in bitcoin loans as collateral after the debt reduction. In addition, the company said it has $38 million in cash and 2,064 thousand BTC, of which 1,724 thousand BTC are held as collateral for the loans. Based on the amount of liabilities, it turns out that the company will be able to financially sustainably survive the decline in bitcoin prices to 14.2 thousand dollars.
Speaking of energy costs, Bitfarms operates at negotiated rates of $0.027/kWh in Washington, D.C., $0.03/kWh in Argentina and $0.046/kWh in Quebec, Canada. On average, these are attractive rates, given that at the global level, the current median rate of payment for electricity is about $0.05/kWh. Although Quebec has the most expensive electricity of the three sites represented, it is the city where 80% of Bitfarms’ corporate bitcoin mining capacity is installed.

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