Bitcoin Miners Dump Coins
Over the last three months, there have been reports of Bitcoin miners dumping thousands of BTC. The volume of BTC being sold was alarming because they were more than the miners were producing in a month. On September 2nd, blockchain data aggregation firm CryptoQuant revealed that bitcoin miners had sold about 4,586 BTC in 3 days. At the time, bitcoin’s price was trending just above $20,000, bringing the dollar value of the sale to more than $93 million at the time.Miners’ Balances Run Low
Public bitcoin miners have now sold a healthy part of their balance sheets at this point. The sales have been understandable given the state of the market, but miners are now facing another problem, and that is the fact that they are running out of BTC to sell. Since they have been selling more BTC than they have been producing, their balances have taken a hit.
Miners running out of BTC to sell | Source:However, not all miners have followed this trend. In fact, some miners have taken this time to increase their holdings. Riot Blockchain is an example of a public bitcoin miner that grew its holding in the last 3 months by almost 100%. Cleanspark also recorded about a 15% increase in its BTC balances. Meanwhile, contesting the claims in recent reports, Hut 8 has clarified that the company has not sold its stack as mentioned by certain agencies and they currently hold around . Despite these miners having to sell large quantities of BTC, the majority continue to do well financially. The only one on the list seeing deep financial struggles is Stronghold, and this has to do with the fact that the company did not have much in the way of a large BTC balance, to begin with.
Featured image from Vecteezy, charts from Arcane Research and TradingView.com
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