Bitcoin Miner Bitfarms Pays $27 Million. A miner is trying to improve his income during a downturn in the crypto market.
Bitcoin miner Bitfarms is trying to reduce its debt burden by repaying loan companies to reduce interest rates and issue contracts as the decline in the crypto market puts miners’ balance sheets under pressure. The company repaid $ 15 million of the bitcoin-backed loan company, possibly signed with NYDIG in June, reducing the outstanding profit to $ 23 million and reducing interest payments by $ 2 million per year. He revised the contract to release $5 million worth of bitcoins and extended the deadline to December 21. 29, the company said in a statement Monday.
Bitcoin miner Bitfarms
The miner paid $12 million in royalties for the secured assets. Miners are suffering as the drop in the price of bitcoin has eroded profitability, making money and debt the main determinant of their survival. Major companies such as Core Scientific (CORZ) and Argo Blockchain (ARBK) said they were in a financial crisis, and Core stopped paying related fees in late October and early November. One of the largest hosting companies, Compute North, filed for bankruptcy in September.
Bitfarms said it has raised $15 million through a market equity program since the start of the third quarter and expects an additional $3.5 million in funding by the end of the year thanks to the sale of bitcoin sites. The company reduced the cost of producing one bitcoin to $14,300 in the third quarter from $17,000 in the second. It reported a net loss of $85 million for the quarter, while its profit margin decreased to 52%. Bitfarms sold 2,595 BTC for $56 million during the quarter. The miner has been selling bitcoin well since June, changing his hodl strategy – or sticking to what he’s mining – to weather the market.
