Bitcoin Miners See Slight Ease In Sell Pressure
After the market crash following the Terra Luna collapse, many miners were forced to sell much of their reserves to prevent liquidation. According to Arcane Research, July saw public miners sell about half of what was sold in June. Many public mining companies and firms built up reserves from over a year of successful mining. Most of these companies also had multiple expansion plans lined up for the upcoming years.
July marks the third month in a row that Bitcoin miners sold more BTC than they produced. This means that at least a portion of what was sold was taken from reserves.
Bitfarms recently reported a $142 million loss on their Q2 report, although they also saw a 5% increase in revenue. The firm had to sell 3,357 BTC in the second quarter to pay a portion of a bitcoin-backed loan from Galaxy. This is quite significant, as they only mined around 1,257 BTC in the quarter. They did also increase their hash rate by 33% last quarter after completing second phase of development at one of their facilities and starting production at another. They also have two upcoming facilities in Argentina.
Another public mining firm, Core Scientific, reportedly sold 9,903 BTC between May and June. Both Bitfarms and Core Scientific previously had some of the highest BTC and machine collateralized debt positions, both of which have been paid down significantly due to dumping their reserves.
Bitcoin’s mining reserves hit an all time high in April 2022, just a month before the record selling in the following three months. Public miners reserves now total 33,772 BTC which is almost a 30% decrease from April.
