Bitcoin news

Miners are starting to sell their Bitcoins

For a long time, the miners of Bitcoin they have had the habit of keeping the result of their mining activities with them. A trend that was well supported by the fact that the profitability of the mining of cryptocurrency was still high. Thanks to the high cash flow, these miners could in other words afford to keep a good part of their earnings, while continuing to carry out their activities. However, recent market trends have brought down the profitability of the Bitcoin mining, prompting miners to tap into their BTC stocks and sell them to keep operations alive.

Bitcoin miners are starting to sell

However, things are changing. A good number of Bitcoin miners have indeed held their sizable stocks mostly during the bear market but with the market turning and Bitcoin now trading below $ 29.000, it has become more difficult for miners to hold these currencies without. compromise their ability to finance operations. As a result, some major Bitcoin mining companies have declared that they have sold or want to sell part of the BTC they hold.

Among the names, that of Digital Marathon is certainly one of the main ones when it comes to mining Bitcoin. The company has managed to solidify its position as a leading competitor in the world of mining and has attracted a large number of investors. Even large companies have failed to escape the onslaught of the market.

Last month, at a press conference, the company announced that it may be forced to sell some of its Bitcoin holdings. Marathon Digital holds more than 9.600 BTC, most of it for nearly two years. However, it appears that the day of reckoning is fast approaching and that even large companies need to get rid of some of their BTC.

Among the companies that have already sold part of their BTC there are for example also Riot e Cathedra Bitcoin. Riot - according to what is emerging online in these hours - would have sold about 10 million dollars worth of Bitcoin in April, for a total of 250 BTC. More recently, Cathedra Bitcoin announced that it had sold 235 BTC at an average price of $ 29.152. The result was just over $ 8,7 million. In its dossier, the company explained that this initiative served to protect itself "from further drops in the price of bitcoin and to maintain its liquidity position".

Is mining no longer profitable?

Mind you, Bitcoin mining still remains profitable, but with the price down by more than 50% compared to all-time highs, profitability decreased by a significant margin. A report from Bitcoinist highlighted the profitability of BTC mining machines with miners returning 50% less cash flow than when BTC was trading at $ 69.000.

Furthermore, the miners' daily income is still low. Last week they grew by 4,50%, reaching the value of 26.706.581 dollars, but they still remain contained values. As a result, the average transaction value and daily transactions have decreased over the past week.

Confidence in bitcoin mining stocks is also waning. The miners are therefore forced to sell part of their holdings in BTC in order to continue their operations ...

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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