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Why This Bitcoin Miner Sold 3,000 BTC In The Last Week



Why This Bitcoin Miner Sold 3,000 BTC In The Last Week


The Bitcoin mining sector has been affected by the bearish price action of BTC. This has forced BTC miners to reduce their inventories, which could lead to constant selling pressure in the crypto market and reduce their leveraged positions.

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Publicly traded BTC mining company Bitfarms announced that it sold 3,000 BTC for around $62 million in the last seven days. The company is adjusting its cash strategy and trying to increase its liquidity, according to a press release.

In addition, the company rescinded a commitment to purchase new hardware by canceling a $37 million contract. In total, Bitfarms improved its “business liquidity by approximately $100 million.”

As the price of Bitcoin has fallen more than 75% from its all-time high, BTC miners have been forced to react and adapt to current market conditions. This could become a hurdle for the crypto market as the price of BTC and other larger cryptocurrencies may have a new hurdle that will prevent it from reaching new highs.

However, BTC miners selling their shares could hint at a potential Bitcoin price bottom as market sentiment reaches extreme levels of fear after a 2-year bull run. Despite mounting selling pressure, BTC has seen a significant bullish reaction and could form a new price range.

As the press release states, Bitfarms holds 3,349 BTC with an average daily production of 14 BTC. The company plans to use some of the recently acquired cash to pay off a loan with Galaxy Digital and further reduce its leverage.

Reduced leverage and the natural dynamics of supply and demand are indicators of healthy markets with less exuberance. This could allow the BTC price to recover and form a macroeconomic floor as global markets move under pressure from new economic factors.

A Maturing Industry, Can Bitcoin Miner Survive Crypto Winter?

Unlike previous market cycles, Bitcoin miners can adapt to market volatility and continue to trade. Instead of reacting to the price action, BTC miners are preparing to weather the crypto winter. Jeff Lucas, CFO of Bitfarms, said:

Given the extreme volatility of the market, we continue to take steps to increase liquidity, reduce leverage and strengthen our balance sheet. Specifically, we have sold 1,500 more Bitcoins and no longer maintain all of our daily BTC production.

Lucas says that the company is optimistic about the long-term price potential of BTC. However, current market conditions are forcing them to change their trading strategy. Lucas added:

While we remain optimistic about BTC price appreciation in the long term, this strategic shift allows us to focus on our top priorities of maintaining our world-class mining operations and continuing to grow our business in anticipation of improving mining economics.

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At the time of writing, the price of BTC is trading at $21,400 with a 3% gain in the last 24 hours.

BTC sees some relief on the 4-hour chart. Source: BTCUSD Tradingview

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