There are 13 major mining firms that sold a total of 5,492 Bitcoin, surpassing their mining output by over 100%. This marks a significant increase compared to the ratios observed in previous months.
Companies like Marathon Digital Holdings and Core Scientific not only sold newly mined coins but also tapped into their existing Bitcoin reserves to sell more than they produced. Hut 8 and Bit Digital went even further, selling over 300% of their monthly production in October.
Experts believe the surge in selling can be attributed to miners preparing for the next “halving” event scheduled for early 2024. This event will reduce Bitcoin mining rewards by 50%. By selling their coins now, miners aim to build capital reserves to navigate through the period of reduced block rewards.
With bitcoin prices rising 26% in October, miners saw an opportunity to fortify their financial position before facing leaner times.
This strategic move ensures that miners can remain solvent and continue their operations amidst the volatile cryptocurrency markets. The increased coin sales observed last month highlight the proactive approach miners are taking to prepare for the upcoming changes in Bitcoin’s supply schedule.
