suffering in the mines – A Bitcoin (BTC) falling below $30,000 does not help the case of minors. Some are still forced to sell their assets to ensure business continuity.
Miners’ bitcoins on sale: post-fall pain
A research note from 1er June 2022 from the company Compass Mining indicates that miners could now “sell their hodled bitcoins on the open market”.
Compass Mining issues these predictions based on data from CoinMetrics. The latter reveal that the flows of miners to the exchanges have reached a upper since January 2022.
Miners would feel ” at least “according to the company, “the pain after the last big fall in prices” – enough to motivate them to sell their bitcoins.
Compass Mining also discusses the“difficulty adjustment down” mining to support the idea that “Miners are hitting a wall when it comes to profitability”.
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Sale of bitcoins: between protection and financing
In addition to these indicators, which reflect the current problems encountered by the sector, recent announcements from mining companies also confirm Compass Mining’s thesis.
Cathedra Bitcoin had informed, in its press release of May 30, 2022, of the sale of 235 BTC during the month. This decision was taken, on the one hand, to increase cash of the company. It aims, on the other hand, to “protect” society against further Bitcoin price declines.
Cathedra Bitcoin not only weathered Bitcoin’s fall below $30,000, but it had already had to operate at 45% flow scheduled for April 2022. Issues affecting its North Dakota site were the cause of this drop in production.
Moreover, it is not the only mining company that has separated from its assets. The society Digihostbased in Toronto, announced in a press release dated 1er June 2022, the sale of part of its bitcoins to finance its energy costs.
This sale also allows Digihost to avoid having to resort to fundraising. Indeed, this solution could dilute the capital of its shareholders.
Traders and analysts predict a bitcoin bullish reversal, without knowing precisely, for the moment, the agenda of the bulls. Despite these prospects, minors are forced to sell their bitcoins, to be able to finance their activities.
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