- The crypto miners have been affected by the market crash and the entry of the crypto winter and have had to sell their reserves in BTC and in order to obtain liquidity.
- The mining pools have stressed that they will continue to sell their BTC to maintain the liquidity of their projects.
Far away seem to be those times when crypto miners monopolized the video card market and competed against the gamer sector to obtain the most powerful ones. Even companies like NVIDIA had to limit the power of their GPUs so that they were not used in the mining of digital assets and thus not leave the video game market without supplies.
Like many industries in the crypto ecosystem Crypto miners have been affected by the market crash and the entry of the crypto winter, having to sell not only their reserves in BTC in order to obtain liquidity.
Mining pools sell their BTC
On June 21, the Bitfarms mining pool announced that I wouldn’t do anymore hodling of all your daily BTC production and that you would make la sale of 3,000 BTC arguing that it was a way to inject liquidity into the company.
The sale of its Bitcoin reserves gave the firm $62 million of which, a part will be used to pay off the loan it has with Galaxy Digital, backed by BTC with a value of $38 million dollars.
This week crypto mining companies Core Scientific Y Argo Blockchain They announced that they have also sold part of their BTC in order to cover their production costs.
For his part, the Co-founder and CEO of Core ScientificMike Levitt made known to its investors during Last June, the firm sold 7,202 bitcoins at an average price of $23,000 dollars, with which it managed to obtain $165 million dollars.
Levitt pointed out to the group of investors that they were working to improve their liquidity and balance, for which they will continue to sell the mined bitcoins and that part of the income obtained from the sale of the BTC would be destined to cover the cost of the servers, increase the data capacity and pay the debts of the firm.
Like Core Scientific, the mining pool Argo blockchain announced in its report to investors that during the month of June they sold 637 Bitcoin at an average price of $24,500 dollars, which represented an income of $15.6 million dollars for the firm.
Like the other firms, this company will use part of the proceeds to finance its operating expenses and capital growth, as well as reduce part of its BTC-backed loans with Galaxy Digital. The company noted that it will continue to sell a significant portion of its monthly Bitcoin production, steadily reducing its exposure to its BTC-backed loan and strengthening its balance sheet..
Crypto Miners Stop Buying Software
During the cryptocurrency spring, mining pools created an over-demand for mining equipment, even surpassing the existing supply of new equipment, having to be placed on a waiting list of months to acquire new equipment.
However, the arrival of the crypto winter has caused not only the demand for mining equipment to disappear, it has also caused its value to drop. Some of those who have canceled their contracts to acquire new equipment are Bitfarm, who canceled a deal to buy new mining hardware that would cost $37 million.
After the high demand that led mining equipment to rise exponentially, now the equipment used for mining has found relative stability that has led them to recover their suggested value.
According to a report from Tom’s Hardware, in May the prices of GPUs presented a reduction of 15%, which added to the falls of 10% and 15% in the previous months. According to the report in some cases, prices have fallen below the recommended price.
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