✍️ 14 October, 2022 – 10:45 👤 Editor: Jakub Motyka
- Bitcoin (BTC) mining companies sell their savings to continue operating.
- Mining companies sold 660% more BTC than the quarter past.
- What is the reason for the liquidation of the miners’ savings?
Bitcoin (BTC) mining companies made massive sales throughout April, May and June 2022. This represented more than 660% with respect to the first quarter of the year in comparison. According to BlocksBridge Consulting, the effects of the bear market have pushed BTC miners to liquidate their savings in order to remain productive.
According to last published report, about 21,342 BTC have been sold between 18 mining companies. This represents 150% of the quarterly production by the same companies. They noted that “the numbers for the second quarter of 2022 declared by 8 public mining companies indicate: Their average cost of production, general expenses and interest for each Bitcoin mined have increased by 22% compared to the first quarter. > These companies represent approximately 10% of the network hashrate.”
Despite Rising Costs, Bitcoin Mining Companies Remain Profitable
The data shows that the mining industry has been strongly affected, both by the downward trend and by the increase in operating costs. This is largely due to the global energy crisis. Despite the fact that companies have found it necessary to sell their reserves to continue mining, an important growth in profitability is observed.
The growth of hashrate or processing power plays a crucial role in the profitability of Bitcoin mining companies. This is because as the difficulty decreases, the productivity greatly increases. The firm explains that if the subtraction between the production growth and the hashrate growth of a company averages 9.8% or less, it could be said that there has been growth. Are we about to start the market recovery?
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Image sources:
- pexels-daniel-dan-7708817: Pexels
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