Mining companies have been liquidating their coins over the past few months. Recent reports from major players indicate a potential intensification of this trend, according to TheEnergyMag.

Recently, the following companies have sold off their holdings:

  • Riot — in December, it sold four times more coins than it mined in the last 30 days;
  • Cango — in February, it liquidated 4,451 BTC (60% of its reserves);
  • Bitdeer — in the same month, it completely sold off its Bitcoin holdings (approximately 943.1 BTC);
  • Core Scientific — announced plans to sell most of its coins by the end of the first quarter.

According to TheEnergyMag, public miners have sold over 15,000 BTC in total over the past five months.

"In other words, the HODL era is gradually coming to an end. Miners are selling off their holdings as they face a sharp decline in profits. Seller pressure should not come as a surprise," the experts added.

Unfavorable Position

The hash price is a key profitability indicator for miners. Currently, it has dropped below $30 per PH/s per day.

In this environment, most public players are operating at or below break-even.

"Historically, the difference between the hash price and hash cost has been one of the strongest factors leading to the liquidation of treasury reserves," noted TheEnergyMag.

Unlike previous downturns, many public miners entered 2025 with significant debts. The industry has utilized credit lines, Bitcoin-backed loans, and secured bonds to finance both operational expenses and the large-scale development of data centers for AI and HPC.

As of December 31, the three largest miners — Hut 8, MARA Holdings, and Riot — collectively pledged over 14,500 BTC as collateral for loans, the magazine's authors reported.

"The catch is that as Bitcoin prices fall, the loan-to-collateral value ratio increases. Following a sharp price drop, collateral ratios likely increased. This means companies have already pledged additional coins to maintain loan-to-value thresholds," the experts added.

The current recovery of the first cryptocurrency to $74,000 has not significantly eased miners' situations. They still need to sell assets to cover operational costs and fulfill plans to transition to AI.

Recall that in February, MARA reported losses of $1.7 billion and announced its intention to shift focus to artificial intelligence.