As Bitcoin (BTC) prices plummet, publicly traded Bitcoin miners must sell almost all of their mined BTC in 2022.
According to a recent report that looked at data from 10 public miners, including Riot, Core Scientific, Bitfarms Cleans Park, Marathon, Hut8, HIVE, Iris Energy, Argo, and Bit Digital , a total of 40,700 BTC collected from the 1st. January to November. 30. About 40,300 are sold and represent almost 100% of Bitcoin mined at this time.
The news was shared in a tweet by Tom Dunleavy, an analyst at Messari, a blockchain research firm.
Is The Sale of Miners Negatively Affecting The Price of Bitcoin?
Tom argues that continuing to sell miners puts downward pressure on the price of Bitcoin. However, some other people who describe the company argue differently. Arthur Hayes, the former CEO of BitMEX, believes that the effect of the market of miners selling on the price of Bitcoin is negative.
Interestingly, data from CryptoQuant shows that BTC holdings by mining companies that would be the biggest HODLers declined in the second half of the year, especially in November, as the crypto industry and – run on media following FTX failure.
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Crypto Miners are Facing Operational Difficulties
Many factors, including the rise of energy costs, falling market prices, and the high difficulty of mining, have contributed to making the crypto sector increasingly profitable. As a result, many players and mining companies will exchange part of their assets in Bitcoin to pay their debts and support their operations.
In fact, Argo Blockchain, a cryptocurrency miner based in the UK, recently partnered with Galaxy Digital Holdings to sell its flagship company Helios. The proceeds from the sale were used to reduce its debt burden and help it avoid bankruptcy.
Due to issues plaguing the company and affecting profitability, Core Scientific was forced to file for Chapter 11 bankruptcy last week. Also remember that crypto mining companies are currently heavily leveraged. The top 10 companies in the mining industry pay $2.6 billion