If investors are free to buy Bitcoins during the dip then why miners shouldn’t do the same. This is exactly what has happened recently when one of the leading Bitcoin miners namely “Bitfarms” has opted for a shortcut in an attempt of increasing its Bitcoin holding. At least a thousand BTCs were purchased by Bitfarms which have now become part of the 4,300 BTC treasury belonging to Bitfarms.
The prices against each unit of Bitcoin have been falling for the past many weeks. While prices continue to decline, Bitfarms has decided to utilize the lower BTC value and hence invested into Bitcoin. An official announcement of the investment was made by Bitfarms on the 10th of January, 2021. In this announcement, the mining company told the public that it had bought a total of 1,000 Bitcoins. The purchase cost Bitfarms an amount of US$ 43.2 Million. Bitcoin holding of Bitfarms has now been increased by almost 30% which has approximately 1,000 + 3,300 BTCs (total 4,300 BTCs) in it.
However, acquisition of Bitcoins was done in the first week of January but the announcement was made 10 days after the purchase.
Bitfarms is currently registered in two countries namely Canada and the USA. It was founded 5 years ago in 2017 and for the time being, is a company trading publicly. It has more than 5 operational mega-scale Bitcoin mining farms operating in the US and Quebec. While one farm is located in the US, however, the remaining 4 farms are located within Quebec. It became a public listed company in Canada in 2019. Similarly, it became a NASDAQ-listed company in the year 2021.
Emiliano Grodzki, Bitfarms CEO commented that the strategy of his company is to get as much as Bitcoins for the end benefit of its shareholders. He said that if the price is less, then Bitfarms would be willing to increase its Bitcoin holding through direct purchase. Otherwise, the company would want to avail Bitcoins as it usually does i.e. through minting Bitcoins and keeping its share. He said that Bitcoin mining rigs still do not come cheap and this is why the dip created an opportunity for investment for Bitfarms.