Given the sheer amount of BTC that's held by miners, there are fears that persistent, large sell-offs could contribute to downward pressure on Bitcoin's price.
Bitfarms has sold 3,000 BTC as it embarks on a painful U-turn from its strategy to HODL the Bitcoin it mines.
The mining company confirmed it offloaded this crypto stash for about $62 million — working out at a price of about $20,666 per coin.
This means that Bitfarms now has about 3,349 BTC on its balance sheet.
The company also went on to confirm that it's typically generating 14 BTC a day through its mining operations, worth about $280,000 a day at current market rates.
In a statement, Bitfarms' chief financial officer Jeff Lucas said:
"While we remain bullish on long-term BTC price appreciation, this strategic change enables us to focus on our top priorities of maintaining our world-class mining operations and continuing to grow our business in anticipation of improved mining economics."
Lucas went on to explain that Bitfarms is seeking to enhance liquidity, deleverage and strengthen its balance sheet during this time of "extreme volatility" — and selling off some of its BTC "is the best and least expensive method" for doing this.
Bitfarms isn't the only mining firm to offload its BTC on the market — with Core Scientific, Argo Blockchain and Riot all performing similar transactions of late.
Given the sheer amount of BTC that's held by miners, there are fears that persistent, large sell-offs could contribute to downward pressure on Bitcoin's price.
