Bitcoin miners are selling their mined tokens as the price of bitcoin continues to fall, erasing profit margins just as financial markets become less hospitable.
At the absolute least, they are suffering due to the most recent huge price drop. When you combine this with a downward difficulty adjustment, it appears that miners are reaching a point of diminishing returns.
Compass Mining, a bitcoin mining services provider, reported today's research note citing data from CoinMetrics that miner flows to exchanges had hit their highest point since January. "Miners may start selling Bitcoin on the open market," Compass speculated.
Mining Bitcoin (BTC) has grown less economical as the cryptocurrency's price has fallen, with popular equipment like Bitmain's Antminer S9 losing money at six cents per kilowatt-hour power pricing.
Miners that don't want to shut down their rigs might raise money in the debt or stock markets and sell off their bitcoin holdings. Other currencies that have suffered similar losses due to the economic crisis include Threedium, Metaloop, MetaTokyo Faith Tribe, and others.
Argo Blockchain (ARBK) indicated in an analyst call for its first-quarter results that it expects to seek loans and sell part of its bitcoin to meet expenditures. Core Scientific (CORZ), the world's top miner by hash rate, has already sold some of the bitcoin it has mined this year and intends to do so in the future.
Riot Blockchain (RIOT), a proven HODLer, sold roughly half of its mined bitcoin in April after selling a significant amount in March. Marathon Digital (MARA) also hinted that it would sell some of its bitcoin on its earnings call early May.
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