During October’s market upturn, prominent Bitcoin miners offloaded 5,492 BTC, which surpassed the amount they produced that month.
Last month, a significant increase in the sale of freshly mined Bitcoin by public miners was recorded. Reports indicate that 13 major mining companies sold more Bitcoin than they generated in October, despite the cryptocurrency’s 26% gain for the month.
Data from TheMinerMag reveal that the sell-to-production ratio for key players, such as Marathon Digital Holdings and Core Scientific Inc., breached the 100% mark. This suggests they not only sold all of their Bitcoin mined in October but also dipped into their existing reserves. Companies like Hut 8 and Bit Digital went even further, liquidating over 300% of their mined Bitcoin in the same month. This leap to a 105% sell-to-production ratio marks a sharp contrast to the 64%, 77%, and 77% ratios seen in July, August, and September respectively.
Bitcoin miners are gearing up for the upcoming halving event. The reason for this accelerated sell-off is twofold: to take advantage of the recent price rise of Bitcoin and to engage in strategic financial preparation before the next “halving” expected early the following year. The halving event will cut the rewards for mining Bitcoin by half, prompting miners to bolster their cash reserves by selling a portion of their Bitcoin assets.
By increasing their BTC sales, miners are proactively strengthening their financial standings to cope with the soon-to-decrease mining rewards. This careful planning is crucial for maintaining their operational flow and securing a sustainable future in the unpredictable crypto market.