Bitcoin Mining Company Bitfarms Increased Its Holdings 30 Percent More

SYNOPSIS

  • Bitfarms reported on Monday that the purchase raised the publicly listed company’s BTC holdings by 30% to over 4,300.
  • Bitfarms, located in Toronto, took advantage of the recent fall in the cryptocurrency market to amass bitcoin at “the lowest cost and in the shortest period of time,” according to CEO Emiliano Grodzki.
  • “We grasped the chance to transfer capital into BTC with the decrease in BTC while mining hardware prices remain high,” he continued.

Bitfarms, a Canadian bitcoin mining company, announced Monday that it had invested $43.2 million in bitcoin during the first week of the year, making it the latest publicly traded company to double down on the nascent cryptocurrency market, despite some experts warning that its volatility makes it an unreliable investment.

Bitfarms On Bitcoin Buying Spree

Bitfarms, located in Toronto, stated in a Monday statement that it bought 1,000 bitcoins in the first week of January, bringing its total holdings to over 4,300 coins worth roughly $175 million; by comparison, Bitfarms made around $121 million in revenue in the 12 months ending in September.

After the news, Bitfarms’ Nasdaq-listed shares tumbled nearly 4% in pre-market trading, essentially mirroring the larger cryptocurrency market’s losses of approximately 3% over the previous 24 hours.

Bitfarms’ acquisition comes just a week after MicroStrategy, the data analytics business owned by billionaire bitcoin bull Michael Saylor, said it had acquired over 2,000 bitcoins for $94 million at the start of December, as prices fought to recover losses after a startling record run in November.

The firm further alluded that:

“Our guiding company strategy at #Bitfarms is to accumulate the most #Bitcoin for the lowest cost and in the fastest amount of time for the benefit of our shareholders.”

Since the third quarter of last year, Bitfarms claims to have bought about 70% of its entire bitcoin holdings, a significant investment that let shares soar as high as 125 percent —before bitcoin’s drop in November sent the company down more than 50%.

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Picture Credits: Bitfarms’ server farm, Marcelo Lavintmann

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