The mining firm received a $100 million loan from Galaxy Digital at the end of last year
Canada-based bitcoin miner Bitfarms said in a statement released on Monday that it purchased bitcoins as markets sunk by as much as 12% in January's first week. Explaining the company's strategy, CEO and founder Emiliano Grodzki held that Bitfarms intends to stack as much Bitcoin as possible in the shortest time possible.
"With the dip in bitcoin, we seized the opportunity to move cash into BTC," the Bitfarms executive explained, adding, "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."
The mining firm had minted 363 BTC last month and 339 in November, bringing the year's close figure to 3,452 coins. Bitfarms shelled out $43.2 million to acquire the trove of 1,000 bitcoins. The acquisition brought the total number of coins in its stash to over 4,400, roughly translating to a 30% addition to the Bitcoin treasury.
Bitcoin market momentarily tumbled but bounced back again
Yesterday, Bitcoin led markets in a sweeping slump that saw the world's most valuable digital coin briefly trade below the crucial $40k level. Second-placed Ethereum also equally bled, falling below the critical $3k support point.
While Bitcoin has largely had a bad year in the markets for traders, the fall it took yesterday marked a three-month low (since September 21) of $39,678, according to CoinDesk. However, the market recovered quickly as Bitcoin bounced back to trade above $40,000.
The bearish sentiments in the market within the first few days of the year have been a result of several factors. Kazakhstan, a major hub for the Bitcoin network, recently witnessed civil unrest that caused an internet shutdown which in effect put out a good share of Bitcoin miners.
In addition, the Federal Reserve's minutes released on January 5, suggesting that the Federal Reserve had a change of heart with its approach to some monetary policies, did no good to the already declining Bitcoin.