Bitcoin miners kept earning from their activities for the longest time. That was when BTC mining was still profitable. Due to the high cash flow, the miners could afford to keep a large portion of their profits. At the same time, they were able to continue their activities. However, the profitability of bitcoin mining has fallen on recent market trends. This encouraged miners to dive in and sell their BTC stash to keep operations going.
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Bitcoin miners sell
A large number of bitcoin miners held on to their significant holdings during the bear market. As the market has turned and bitcoin fell below $ 29,000, it’s harder for miners to keep these coins.
Because: In this case, you jeopardize your ability to finance the operation. As a result, a number of prominent Bitcoin mining companies have announced that part of their BTC is for sale or not.
Digital Marathon is without a doubt one of the first names to emerge when bitcoin mining content comes up. The company has been able to consolidate its position as a major competitor in the mining world and attract large numbers of investors. But even large companies have not been able to escape the situation on the markets.
Last month, during an earnings announcement, the company announced that it may have to sell some of its Bitcoin holdings. Marathon Digital owns more than 9,600 BTC, most of which it has owned for almost two years. However, the calculation day seems to be fast approaching – even large corporations seem to have to part with some of their BTC.
Companies that have already sold some of their BTC include Riot and Cathedra Bitcoin. Riot reportedly sold back about $ 10 million worth of bitcoin in April, for a total of 250 BTC.
Cathedra Bitcoin recently announced that it had sold 235 BTC at an average price of $ 29,152. That equates to just over $ 8.7 million. The company explains in its report that this was done to “hedge against further Bitcoin price declines and maintain its liquidity position.”
Bitcoin: Is Mining More Profitable?
Bitcoin mining is still profitable. But: With the price lower than 50% from its all-time high, profitability has dropped significantly. It is reported that miners are now generating 50% less cash flow than when BTC was trading at $ 69,000.
In addition, the daily earnings of miners remain low. Over the past week they are up 4.50% to reach $ 26,706,581. But they are still low. This is because the average value of both transactions and daily transactions has fallen in the past week.
Belief in bitcoin mining stocks is also bearish. As a result, miners are now forced to sell some of their BTC holdings – the only way to keep operations going.
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Text credit: Newsbtc
Last updated June 3, 2022
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