While the Bitcoin community has been seeing some fluctuations in the prices of the most popular cryptocurrency in the world, it is the latest state of Bitcoin that has actually managed to shock the entire nation.
The miners of Bitcoin have actually started to need cash and hence are in the dire requirement of a proper boost. According to the best website to analyse cryptocurrency, the state of Bitcoin is not that good since there have been some fluctuations in the stocks and prices of the cryptocurrency for sure. So, it is definitely bad news for the miners since they are in the need of cash.
BTC has definitely seen a drop in the price ever since November and there has been a dip in the revenue as well. All of this can be attributed to the increase in the competition with new and more advanced altcoins being released. Hence, the Bitcoin miners are actually considering selling the coins that they have in the stockpiles.
Not to mention that they are also planning on selling out all the shares that they have in the companies. All of this is taking place due to the fact that the mining profitability has been at an all-time low since the month of November and people need to have their sources of money for sure.
Bitcoin currently holds about $43,500 in the stocks and has about 33% less than the ATH or All-Time High of $69000 that it managed to reach that particular month. Hence, miners are definitely not selling at a pretty opportune time and will end up taking some losses for sure.
However, as they say, it is important to pay the equipment and electricity bills in order to mine Bitcoin and that is exactly what they are planning on doing.
Data that has been gathered from the on-chain Analytics firm known as Glassnode indicates that the miners of Bitcoin have actually become net sellers and changed their role from being HODLers.
Since the 9th of November, the return from mining one BTC has witnessed a decrease by about 50.5% on average for the two most popular mining devices, the S9, and the S19, according to data by blockchain research firm Arcane Research. This means the return on investment has decreased at a greater rate than the price of BTC.
A huge elevation in hash rate has made a contribution to the inferior profitability related to mining. Rivalry among miners upsurges proportionally with hashrate because it means more devices have been turned on to compete to find the next block.
Cointelegraph made a report on the 13th of February that Bitcoin had reached a new ATH in hashrate. That milestone was achieved by jumping from 188.4 exahashes per second (EH/s) to 284.11 EH/s in a single day. The hashrate is currently at about 232.19 EH/s as of the time of writing according to Ycharts.
Some large mining operations have opted to increase their cash piles or pay their bills by selling stocks rather than crypto. On the 11th of February, a spokesperson for the Marathon Digital Holdings Inc. (MARA) mining operation told Bloomberg, “We started hodling in October 2020, and since then, we have not sold a single satoshi.”
Instead, Marathon filed with the Securities and Exchange Commission (SEC) to sell $750 million in stocks and securities. Seeking Alpha reports that Marathon intends on using a “substantial portion” to purchase hardware and general purposes.
MARA is currently down 0.56% and priced at $28.24 in after-hours trading. An analyst for wealth management firm D.A. Davidson told Bloomberg on Feb. 14 that miners have ideological and business reasons for being reluctant to sell Bitcoin: “Big miners would rather sell equity, because their shareholders want them to hold their Bitcoin and not even think about selling it.”