The profits of bitcoin mining have been kept for the longest time. This was when mining cryptocurrency was profitable. These miners were able to keep a large portion of their earnings while still being able pay their bills. The recent market downturn has caused bitcoin miners to resort to selling and dipping into the BTC to continue their operations.
Bitcoin miners are selling
Many bitcoin miners have managed to keep their substantial amounts of coins through bear markets. Miners have found it increasingly difficult to retain these bitcoins, especially with the price of bitcoin dropping below $29,000. This has led to a variety of well-known bitcoin mining companies revealing that they sold some or would like to sell their BTC.
Similar Reading: Bitcoin Exchange Outflows Show That Investors are Starting to Accumulate| Bitcoin Exchange Outflows Suggest That Investors Are Starting To Accumulate
Marathon Digital is without doubt the most prominent name when it comes to bitcoin mining. This company is a leading contender in the bitcoin mining industry and has drawn a lot of investors. But even the largest companies can’t escape the market.
During an earnings call last month, Marathon Digital announced that some of its bitcoin holdings might have to be sold. Marathon Digital owns more than 9.600 BTC. The majority of this bitcoin has been held by Marathon Digital for close to two years. It seems that the time of reckoning has fast approached and large corporations will need to sell some BTC.
BTC struggles as the sell-offs get more intense. Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Riot Bitcoin and Cathedra bitcoin are two companies that have sold some BTC. According to Riot, it had sold approximately $10 million of Bitcoin in April. This amount equated to 250 BTC. Cathedra Bitcoin announced recently that it had sold 235 BTC for an average of $29152. The total amount was just over $8.7million. The company explained in its report that this was to help it insulate “itself from additional declines in the price of bitcoin and maintains its liquidity position.”
Mining No Longer Profitable?
Bitcoin mining is still profitable, but the price of Bitcoin has fallen more than half off its peak. This means that the profit margins have declined significantly. Bitcoinist published a report that highlighted the profitability of BTC mining. Bitcoinist reports that miners now return 50% less cash flow to the company than when BTC traded at $69,000.
Related Reading: Bitcoin Rests Tentatively Over $31,000. Bull Rally Or Trap| Bitcoin Rests Tentatively Above $31,000, Bull Rally Or Trap?
Daily miner revenue is still low. Although it had increased by 4.50% to reach $26,706,581 last week, these are still low. This is due to the decline in daily transactions and average transaction values over the last week.
The faith in Bitcoin mining stocks is also declining. To keep their mining operations running, miners will need to liquidate some of their BTC assets.
Featured image taken from Outlook India. Chart by TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…