Crypto Miner Bitfarms Sells Bitcoin to Reduce Debt, Boost Liquidity

Cryptocurrency mining outfit Bitfarms has sold almost half its bitcoins — 3,000 BTC, worth $62 million — over the past week, formally ending its “hodling” strategy

article-image

Source: Shutterstock

share
  • Bitfarms’ current bitcoin holdings stand at 3,349 BTC, down from more than 6,000 BTC in May
  • The firm used some of the cash to pay off bitcoin-backed loans from Galaxy Digital

Bitfarms has ditched its “hodling” strategy and begun selling its mined bitcoin (BTC) to pay off loans and shore up its balance sheet.

The Toronto-based cryptocurrency miner sold 3,000 BTC ($62 million) in the past week, it announced on Tuesday. Bitfarms is “no longer HODLing all our daily BTC production,” Jeff Lucas, the miner’s CFO, said.

“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 environment,” he added.

Since May, Bitfarms’ BTC holdings have shrunk by almost half to 3,349 BTC ($67.5 million). The firm is currently mining around 14 BTC ($282,000) per day over the month to date. 

Bitfarms said it used some of those proceeds to reduce its bitcoin-backed credit facility with digital asset bank Galaxy Digital by 42%, now down to $38 million.

Indeed, selling bitcoin to cover expenses is becoming par for the course for cryptocurrency miners, especially those who had taken out loans to fund their rapid expansion over the past year.

Bitfarms’ move mirrors competitor Riot Blockchain, which has sold 700 BTC for over $17.5 million since March. In May, Marathon Digital’s Chief Financial Officer Hugh Gallagher said it too may consider selling some of the bitcoin it holds for treasury management or general expenses.

Bitcoin miners also dumped their holdings faster than usual in May, according to Arcane Research analyst Jaran Mellerud.

Loading Tweet..

Arcane found the top 28 publicly-traded miners sold 4,271 BTC last month, representing a 329% month-on-month jump — and they’re likely to sell more in June, Bloomberg reported.

Fears of contagion from the asset liquidations of Three Arrows Capital have pulled crypto prices lower, with bitcoin reaching lows of $17,600 this week before recovering above $20,000. The bellwether digital asset last traded at $20,400 as of Wednesday morning, according to data from Blockworks Research, almost 60% below its value at the start of the year.

Crypto mining stocks are generally tightly correlated with bitcoin prices. Share prices for both Riot and Marathon — the two largest public mining companies — have collapsed 80% so far this year while Bitfarms has fallen 73%.

The sense of euphoria that enabled bitcoin’s all-time high of $68,900 in November 2021 is missing right now, said Brian Gould, head of trading at Capital.com.

 “Traders in crypto have had to take a cold shower, and building that euphoric momentum to reignite the uptrend will take a lot of energy and influence that we’re not seeing,” he said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /