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Bitfarms offered more Bitcoin than it mined in Q3

Bitfarms sold more Bitcoin than it mined in Q3 Bitfarms offered more Bitcoin than it mined in Q3 Oluwapelumi Adejumo ·29 minutes ago · 2 minutes read

Bitcoin mining expert Jaran Mellerud stated while Bitfarms’ Bitcoin sales assisted it to decrease its financial obligation problem, he explained that the miner does not have much Bitcoin left.

2 minutes read

Updated: November 16, 2022 at 5: 36 pm

Bitfarms sold more Bitcoin than it mined in Q3

Cover art/illustration through CryptoSlate

Bitcoin mining company Bitfarms’ third-quarter report reveals that the miner offered more BTC than it made in the quarter -the miner offered 2,595 BTC while mining 1,515 BTC.

The miner concentrated on enhancing its position to make it through the bearishness by cutting expenses and lowering its financial obligation commitments considerably throughout the quarter.

However, the miner still holds $55 million in machine-collateralized financial obligation and $23 million in Bitcoin-collateralized financial obligation.

Bitfarms’ liquidity under spotlight

Bitcoin mining expert Jaran Mellerud stated that while Bitfarms’ Bitcoin sales assisted it to lower its financial obligation problem, the miner does not have much Bitcoin left.

Mellerud stated:

“( Bitfarms) holds $38 countless money and 2,064 bitcoin. The issue is that 1,724 of these Bitcoin are vowed as security, providing the business an overall unpledged liquidity of just $44 million.”

The cost of the flagship digital possession positions another significant difficulty for the company as it should preserve a security worth of 125% to the loan.

Mellerud stated the miner’s whole Bitcoin stack of 2,064 equates to 141% of the loan. If BTC’s rate fell to around $14,200, the business’s loan might be liquidated.

Bitfarm Liquidity
Source: Hashrate Index

Following this, expert Mellerud concluded that “the business’s liquidity is inadequate to money its scheduled growths.”

Bitfarms keeps expenses down

Bitfarms’ third-quarter report exposed that the company’s basic and administrative expenditures were down 15% to $6 million, leaving out non-cash share-based payment.

Speaking on this, Mellerud applauded the company for lessening its production expenses while keeping its administrative expenses fairly low compared to rivals.

According to Mellerud, Bitfarm has access to more affordable electrical power as its rates are considerably lower than the market typical of around $0.05 per kWh. Bitfarms’ anticipates to pay $0.027 per kWh in Washington, $0.03 per kWh in Argentina, and $0.046 per kWh in Quebec.

Bitfarms electricity forecast
Source: Hashrate Index

Meanwhile, the majority of the business’s earnings originates from its Quebec centers which represent over 80% of its earnings.

However, the Bitcoin mining company’s strategy to broaden into South America is stalling due to administration. Mellerud kept in mind that the business may require external funding or cut down on its growth strategies.

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