Bitfarms gives 3,000 BTC to Galaxy Digital as loan payment

Bitcoin miner Bitfarms has paid down a $100 million loan with the sale of 3,000 BTC.

Bitfarms also secured an additional $37 million facility collateralized by mining machines.

Bitfarms had lowered the loan by $34 million to $66 million via the sale of 1,500 of its bitcoin holdings.

Then it added an additional 1,500 — bringing the total owed down to $38 million.

Bitfarms’ move to sell some of its daily production is a pivot away from its previous strategy of holding onto its mined bitcoins.

In 2021, the company mined a total of 3,453 BTC. At the time of publication, Bitcoin’s price was around $21,500.

The company believes that this strategy is the best and least expensive method in the current market environment.

The loan was secured with crypto-focused trading and investment firm Galaxy and collateralized at 143% of the amount borrowed.

Per the loan agreement, Bitfarms is required to contribute additional collateral anytime the value of the collateral falls below 133%.

On May 31, Bitfarms reported that it owned 6,075 BTC. Their holdings now stand at 3,349 BTC, taking into account the full 3,000 BTC sold and the added June production at an average of 14 BTC per day.

With the current Bitcoin price of around $21,500, those holdings could be worth roughly $72 million, which is above the 143% of the remaining $38 million borrowed (about $54.34 million).