Bitcoin Miners Sell Stocks and BTC as Yields Halve Since November

Bitcoin miners are selling parts of their stocks and shares of their companies after mining profitability plunged since November.

With Bitcoin (BTC) currently holding around $43,500, around 33% lower than the all-time high (ATH) of around $69,000 reached that month, miners are selling at a less than opportune time. However, electricity and equipment bills must be paid.

Data from on-chain analytics firm Glassnode shows Bitcoin miners have become net sellers, after being net hodlers for months.

Since November 9, the yield of mining one BTC has decreased by an average of 50.5% for the two most popular mining devices, the S9 and S19, according to data from blockchain research firm Arcane. Research. This means that the return on investment has decreased at a faster rate than the price of BTC.

A sharp increase in hashrate has contributed to the decline in mining profitability. Competition among miners increases proportionally with hashrate, as it means more devices have been activated to compete to find the next block.

Cointelegraph reported on February 13 that Bitcoin had reached a new ATH in hashrate. This milestone was achieved by going from 188.4 exahashes per second (EH/s) to 284.11 EH/s in a single day. The hashrate is currently at around 232.19 EH/s at the time of writing according to Y-Charts.

Some large mining farms have chosen to increase their liquidity or pay their bills by selling stocks rather than crypto. On February 11, a spokesperson for mining Marathon Digital Holdings Inc. (MARA) said Bloomberg“We started hodling in October 2020, and since then we haven’t sold a single satoshi.”

Instead, Marathon deposit with the Securities and Exchange Commission (SEC) to sell $750 million worth of stocks and securities. Looking for Alpha reports that Marathon intends to use a “substantial portion” to purchase equipment and general uses.

MARA is currently down 0.56% and Dear at $28.24 after hours trading.

Related: Russian Ministry Wants to Legalize Bitcoin Mining in Specific Areas

An analyst at wealth management firm DA Davidson said Bloomberg on February 14, that miners have ideological and commercial reasons to be reluctant to sell Bitcoin:

“Big miners prefer to sell stocks because their shareholders want them to hold their Bitcoin and not even think about selling it.”

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