These Bitcoin miners sold more BTC than they produced in October: data

For the first time in three months, 13 major publicly traded crypto mining companies sold more Bitcoin (BTC) than they produced.

According to Bitcoin mining research platform TheMinerMag, miners such as Marathon Digital, Core Scientific, Argo Blockchain, BitFarms, BitDigital, Hat8, Iris Energy and Terawolf had a liquidity-to-production ratio of 105% in October, meaning they sold all of them. . Their mining coins and assets derived from their holdings.

Miners sold more BTC than mines in October

Bitcoin's 28% rally to around $35,000 in October pushed the digital asset to an 18-month high. As the companies sold 5,492 BTC – an estimated value of $164 million – the liquidity of the 13 public mining companies recorded BTC's 30% monthly gain.

October's liquidity-to-yield ratio was higher than July, August and September, which were 64%, 77% and 77%, respectively. The ratio peaked in June 2022 when the bear market began to take it to 360%, before falling to around 80% in August.

Notably, some mining companies sold all their mined BTC continuously every month, but firms such as Marathon, Hat8, Cipher, Clint Spark, and Bit Digital use a hybrid treasury strategy, and liquidated more in October than in previous months. Bit Digital and Hut had the highest individual ratios, selling 8, 422 and 365 BTC respectively, draining more than 300% of their monthly output.

Preparing for the upcoming Bitcoin halving

Bitcoin miners may sell their large mining holdings for a number of reasons, including replenishing their cash reserves or realizing profits from price rallies. Another major reason is to stockpile cash in preparation for the upcoming Bitcoin halving event, which will halve their rewards.

Bitcoin halving happens every four years or after 210,000 blocks and continues until all 21 million BTC have been mined.

The mechanism controls the release of new BTC by reducing the number of coins that are mined during the day. The last stripping event in May 2020 reduced the network's block reward from 12.5 BTC to 6,25 BTC, and the next one, scheduled for April 2024, will see a reduction to 3,125 BTC.