#BitcoinMining #BTC #Cryptocurrency #CryptoMining #MiningCompanies #Liquidation #BitcoinHalving #BlockRewards
Bitcoin mining companies had an interesting development in October as they sold more bitcoins than they produced. According to research from Bitcoin mining platform TheMinerMag, the liquidation-to-production ratio for top mining companies such as Marathon Digital, Core Scientific, Argo Blockchain, Bitfarms, Bit Digital, Hut 8, Iris Energy, and Terawulf was 105% in October. This means that they sold all the bitcoins they mined and even liquidated assets from their holdings. The liquidation was fueled by Bitcoin’s 28% rally, bringing its value to around $35,000 and resulting in the firms selling 5,492 BTC, worth approximately $164 million.
The liquidation-to-production ratio in October was higher than the previous three months, which had ratios of 64%, 77%, and 77% for July, August, and September, respectively. Some mining companies consistently sell all their mined BTC every month, while others, like Marathon, Hut 8, Cipher, CleanSpark, and Bit Digital, utilize a hybrid treasury strategy. In October, these companies liquidated more bitcoins than in previous months. Bit Digital and Hut 8 had the highest individual ratios, liquidating over 300% of their monthly productions. This increased liquidation may be attributed to miners replenishing their cash reserves, capitalizing on price rallies, or preparing for the upcoming Bitcoin halving event, where block rewards will be halved, reducing the issuance of new BTC.
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