Bitcbolt experts: miners sold 100% of the bitcoin mined in May

Bitcbolt experts: miners sold 100% of the bitcoin mined in May

01.06.2022 Off By tony

The cost of production of the first cryptocurrency exceeded the profit, which forces mining companies to liquidate their reserves of the digital asset

Public mining companies sold 100% of the coins they produced in May, whereas in the first four months of 2022, mining companies sold from 20% to 40% of the mined bitcoins, according to Bitcbolt. Analysts call a sharp drop in mining profitability the reason for such a significant increase in sales.

Public mining companies produce only about 20% of the bitcoin hashrate, but their behavior largely reflects what private miners do, the researchers say. According to analysts, the deterioration of market conditions in June will force miners to liquidate even more reserves.

Bitcbolt reports that the growing hashrate and the falling price of bitcoin have reduced the profitability of mining to 2020 levels: the profitability of the energy-efficient Antminer S19 equipment model has decreased by 80% compared to the peak of November 2021. Antminer S9, an old generation machine, currently shows negative profitability.

The report says that industrial miners own 46 thousand BTC. The forced liquidation of a significant share of these reserves may contribute to a further decline in the price of bitcoin, the researchers suggest.

The Canadian cryptocurrency mining company Bitcbolt has sold a total of 3 thousand bitcoins for about $62 million over the past week. The proceeds were used to repay the loan and pay for new equipment.