What we do is we contract with a hosting provider with a fixed price,” Marathon CEO Fred Thiel told Bitcoin Magazine. “I don’t have to worry about land leases, buying transformers, buying containers, building buildings, paying deposits to the energy providers, et cetera. Contrary to some other big miners, the firm doesn’t seek to vertically integrate rather, it outsources most of its operations while retaining ownership of its miners, which incurs costs only when the machines are online and hashing. Marathon has been able to keep holding its bitcoin so far partly because of its operations structure. Meanwhile, Marathon Digital Holdings and HUT 8 remain depositing monthly bitcoin production into custody. Core Scientific, however, went a bit further and dumped 78.6% of its bitcoin holdings for $167 million, which it said “were primarily used for payments for ASIC servers, capital investments in additional data center capacity and scheduled repayment of debt.” The firm added that it will “continue to sell self-mined bitcoins to pay operating expenses, fund growth, retire debt and maintain liquidity.” Bitfarms also sold a considerable chunk of its holdings – over 3,000 BTC – last month. In June, Riot Blockchain sold 300 BTC, while CleanSpark sold 328. While some have sold only periodically their mined BTC since then, others have opted to part ways with some of the coins they had put in the balance sheet in previous months. In May, most public miners started selling considerable amounts of bitcoin to pay off debt or recurring costs, and the trend has apparently not died off. dollar value.Ĭonsequently, with current macroeconomic conditions impairing companies’ abilities to raise capital and a bleeding bitcoin price, many public miners saw themselves with no other option than to give up on their HODL mentality. While that strategy worked fine during the 2020-2021 bull market, when the bitcoin price was increasing and capital was easier to raise, over-leveraged miners have come under extreme pressure this quarter as the cryptocurrency lost over 70% of its U.S.

Miners racked up much bitcoin- and equipment-backed financing to raise a combined $4 billion in capital for daily expenditures as bids to keep increasing bitcoin treasuries rose in the industry. But over the past couple of years a “HODL” strategy has permeated the industry as participants have opted to pay off expenses with debt instead. Bitcoin miners have historically sold BTC as they produced it to cover operating costs.

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