TheEnergyMag Predicts Increased Sales from Bitcoin Miners

Bitcoin mining companies are increasingly liquidating their holdings, with significant sales reported over the past few months, as outlined by TheEnergyMag. Major firms like Riot, Cango, Bitdeer, and Core Scientific have been notably active in this trend.

In December, Riot sold four times the amount of Bitcoin it mined, while Cango liquidated 4,451 BTC in February, representing 60% of its reserves. Bitdeer also divested entirely of its Bitcoin holdings, approximately 943.1 BTC, in the same month. Core Scientific has announced plans to sell most of its coins by the end of Q1.

In total, public miners have sold over 15,000 BTC in the last five months, signaling the end of the HODL era as miners struggle with declining profits. Experts note, "Miners are selling off their holdings as they face a sharp decline in profits. Seller pressure should not come as a surprise."

Challenges for Miners

The hash price, a critical measure of profitability for miners, has fallen below $30 per PH/s per day, pushing many operators to the brink of break-even or below. TheEnergyMag highlights that the historical gap between hash price and hash cost has often triggered treasury liquidations.

Many miners entered 2025 with substantial debts, relying on credit lines and Bitcoin-backed loans to fund operations and expand data centers for AI and high-performance computing (HPC). As of December 31, Hut 8, MARA Holdings, and Riot collectively pledged over 14,500 BTC as collateral for loans.

Experts caution that as Bitcoin prices decline, the loan-to-collateral value ratio worsens, leading firms to pledge additional coins to meet loan-to-value requirements. Despite a recent recovery in Bitcoin prices to $74,000, miners still face pressure to sell assets to manage operational costs and pivot towards AI initiatives. Notably, MARA reported a loss of $1.7 billion in February and plans to shift its focus to artificial intelligence.