Since the concept of Bitcoin mining came into being, Bitcoin miners have hoarded the proceeds of their activities. Because of their substantial cash flow, these miners were able to keep a significant amount of their stash from mining Bitcoin, while continuing to operate. Recent market trends, however, have caused a nosedive in the profitability of bitcoin mining, forcing miners to tap into their BTC reserves and sell to stay afloat.

With Bitcoin now trading below $30,000 at press time, miners are finding it more difficult to hold BTC without jeopardizing their ability to fund their operations. Bitcoin mining profitability has plunged to its lowest levels since mid-2020, according to data from Bitinfocharts, with Bitcoin prices hanging around comparable lows since that time. As a result, a number of well-known bitcoin mining businesses have announced that they have sold or will sell, some of their BTC holdings.

Why Bitcoin miners are Selling 

According to Compass, miner flows to exchanges reached their greatest level since January, citing Coinmetrics data. The selling had been followed by a significant drop in Bitcoin values over the next month, with some relief in March.

Cathedra, a Canadian miner, was the most recent miner to sell the crypto asset. In its most recent earnings report, the miner stated that it sold 235 BTC in May, nearly all of its holdings, for a total of $8.8 million. The transactions were made to “isolate itself” from further price drops, according to the business.

During an earnings call last month, Marathon Digital, one of the largest Bitcoin miners, said it might have to liquidate some of its bitcoin assets. Marathon Digital now possesses about 9,600 BTC, the majority of which it has kept for nearly two years. However, it appears that the day of reckoning is drawing near, and even major corporations will be forced to sell part of their BTC.

Is Mining Still Profitable? 

Bitcoin mining is still profitable, but with Bitcoin’s price now down more than 50% from its all-time high, the profit margin has shrunk significantly. Miners are currently returning 50% less cash flow than they were when Bitcoin was selling at $68,000.

Furthermore, daily miner revenues are still minimal. It increased by 4.50 percent last week to $26,706,581, although these figures remain low. This is because the average transaction value and daily transactions have both decreased in the last week. Until the market condition improves, it is likely to remain a tough time for Bitcoin miners to turn in profits.