In May 2022, public mining companies sold 4,411 BTC. Cryptocurrency mining companies are on the brink of survival. Businesses are forced to exchange BTC for fiat to pay for electricity as well as employee salaries.
Amid the crypto market crash, miners sell Bitcoin (BTC) to survive the crisis.
The financial statements of public mining companies showed that they had to quadruple cryptocurrency sales to make ends meet.
In May 2022, public mining companies sold 4,411 BTC. This is four times more than the average for the month of January to April 2022. This is demonstrated by the financial statements that public companies deliver to the regulator.
Public Mining Companies Increase Sale of Bitcoin
Data from analytics firm CoinMetrics also confirms that miners have started moving coins to cryptocurrency exchange wallets.
Despite the lack of reliable information on the movement of miner-owned coins, it is quite obvious that cryptocurrency mining companies are on the brink of survival.
Initially, miners received 50 BTC for each block mined. But every four years the amount of remuneration has been reduced by half (halving).
Now they are paid 6.25 BTC. A new block appears every 10 minutes on average, which means around 900 BTC are created per day. In addition, they receive a commission for processing transactions.
In good times, miners have enough money to pay for electricity and to cover other operating expenses, so they prefer to save coins.
Currently, though, the situation is different: electricity prices are rising and miners’ profits are falling along with cryptocurrency rates.
Under these conditions, companies are forced to exchange BTC for fiat to pay for electricity and employee salaries.
Miners: Business Reduction
At the end of May, around 46,500 BTC (worth $1.5 billion at the time) were stored in the wallets of public miners. Companies will likely have to increase Bitcoin sales to fund their operating activities.
Miner sales will increase the volume of coins in circulation and increase the downward pressure on the market.
At press time, the top cryptocurrency is trading at $19,900. Previously, the cryptocurrency fell to $18,700, this is the lowest value since December 2020.
The digital asset market capitalization fell to $880 billion, losing more than $500 billion in a week.
By Audy Castaneda
