After struggling with losses for two months, miners only enjoyed a little after the US inflation announcement. Leading names in the field have sold much of their Bitcoin production, making significant earnings amid a bearish market.
The move to dump Bitcoin (BTC) recently announced by leading names in the mining industry is making investors increasingly nervous.
Following two months of stagnation, Bitcoin miner revenue improved, with a 68.6% rebound. However, the crash of BTC to USD 18,500 has baffled departing traders, causing the overall crypto market to crash before the Merge.
That will be a warning sign for BTC since miners are usually one of the last defense lines to support the price.
In May, miners put repeated pressure on Bitcoin whales as their revenue suffered the worst drop this year. One month later, that led to much hype, with statistics trading 100% of the BTC production.
At the time, Bitcoin was trading above USD 30,000, but the above action by miners has pushed BTC below USD 18,000.
A drop in the BTC price by over USD 18,700 will force miners to remain patient to face difficulties again. After struggling with losses for two months, they enjoyed a little in July when the market rallied after the US inflation announcement.
Those Miners Who Are Selling their Bitcoin Production
Core Scientific, the leading name in the cryptocurrency mining industry, owns the highest amount of Bitcoin. According to a recent report, it produced 1,334 BTC and sold 1,125 BTC in August, earning about USD 25.9 million.
The company has offered shares worth up to USD 100 million to improve its liquidity to face financial challenges. However, trading most of its Bitcoin is the only option as it seems insufficient to allow conquering the current scenario.
Riot Blockchain produced 374 BTC but offered 350 BTC in August, earning USD 7.7 million. Before September, the company held about 6,720 BTC, created with its self-mining equipment.
Bitfarms did not publish the BTC revenue figures in June but only revealed that it had mined 252 BTC. However, its CFO Jeff Lucas said the company would no longer HODL all Bitcoin tokens created daily.
The executive pointed out that it would choose to act quickly to increase liquidity, minimize leverage, and strengthen its balance sheet. Therefore, it may have offered the above 252 BTC widely.
Finally, Digital Marathon mined 184 BTC in August, bringing its entire holdings to 10,311 BTC. Regarding mining production, the ratios match its reports in June 2022 (10,055 BTC) and July 2022 (10,055 BTC).
That determination has been impressive, as the mining production of the company plummeted by 44% in the second quarter of 2022. A storm drastically affected the city of Hardin in June, damaging many of its power generation services to mine Bitcoin.
Meanwhile, BTC is trading at around USD 19,291 and has accumulated a 2.9% gain over the last 24 hours. While its daily trading volume is above USD 29.38 billion, its market capitalization is about USD 369.32 billion, according to CoinGecko.
By Alexander Salazar
