For the longest time, bitcoin miners have held the ruins of their activities. That is when the profitability of mining the cryptocurrency was still high. Due to high cash flow, these miners could afford to keep a good portion of their rewards while still being able to carry out their operations. However, recent market trends have tanked the profitability of bitcoin mining, causing miners to start dipping into their BTC stash and selling to keep operations alive.
Bitcoin Miners Sell
A good number of bitcoin miners have held the sizable bags mostly through the bear market. With the turn of the market and bitcoin now trading below $ 29,000, it has become more difficult for miners to hold these currencies without compromising their ability to finance their operations. The result of this has been a number of prominent bitcoin mining companies coming out to say that they have sold or will sell some of the BTC they hold.
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Marathon Digital is definitely one of the first names that comes up when the topic of bitcoin mining comes up. The company was able to cement its position as a major challenger in the mining world and attracted a large number of investors but even large companies could not escape the market attack.
Last month, the company announced during a winning call that it might have to sell some of its bitcoin assets. Marathon Digital holds more than 9,600 BTC, most of which it has held for nearly two years. However, it seems that the day of reckoning is fast approaching and even large companies will have to get rid of some of their BTC.
BTC continues to struggle as sell-offs intensify | Source: BTCUSD on TradingView.com
Companies that have already sold some of their BTC include Riot and Cathedra Bitcoin. Riot reportedly sold about $ 10 million of Bitcoin back in April, which came out to a total of 250 BTC. Most recently, Cathedra Bitcoin had announced that it sold 235 BTC at an average price of $ 29,152. It came in at just over $ 8.7 million. The company explained in its report that this was to help it isolate itself from “further declines in the price of bitcoin and maintain its liquidity position.”
Mining No More Profitable?
Bitcoin mining remains profitable but with the price more than 50% down from its all-time high, profitability has declined by a significant margin. A Bitcoinist report emphasized the profitability of BTC mining machines. The miners are now returning 50% less cash than they did when BTC traded at $ 69,000.
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Additionally, daily mining incomes are still low. It grew by 4.50% last week to land at its $ 26,706,581 value but these remain low. It is a result of the average transaction value and daily transactions declining over the past week.
Confidence in bitcoin mining stocks is also declining. So now, miners are being forced to sell some of their BTC assets in order to be able to continue their operations.
Featured image from Outlook India, chart from TradingView.com
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