Bitcoin miners are selling their bitcoin reserves to make up for the difference between declining profits and rising production expenses. How are bitcoin miners coping with the downturn?
Bitcoin miners were paid $68,000 for each coin (BTC) they created at the peak of the market in November 2021, but the price has since fallen to under $28,000.
According to on-chain statistics from on-chain analytics business Glassnode, miner revenues are down 56% from all-time highs, and companies are selling their BTC to compensate.
Last month, Riot Blockchain (RIOT), a Canadian company that produced $213.2 million in 2021, a 1,665 percent increase year-over-year, had to sell its BTC stake.
Meanwhile, Bitfarms (BFIT) has scaled back its expansion plans, and Stronghold Digital (SDIG) has failed its revenue targets for 2022.
BTC reserves are being reduced.
HODLers, as Bitcoin miners are known, kept their hands ‘diamond’ during weak markets.
But that is no longer the case. According to data from Glassnode, miner balances are now in decrease, and miners are selling BTC more than adding it.
In a recent video update, Glassnode analyst Checkmate states, “Since 2019, we’ve observed mostly miners adding to their balance.”
