Miners sold 14K Bitcoin worth $300M on July 15, largest dump since January
Numbers from blockchain analyst CryptoQuant show that it was sold by a miner 14,000 Bitcoin (BTC) on July 15 is worth about $ 300 million, the highest sales since January.
The miner’s sell-out trend began in early June and sales continue to grow.
Energy problem
Miners are mostly forced to sell because bearish Bitcoin prices do not make up for the energy spent on mining.
According to the numbers, as long as Bitcoin remains around $ 20,000, all mining equipment produced before 2019 will not be profitable. In addition, the conflict between Russia and Ukraine has also raised energy prices, which is of no use to miners.
According to a recent survey, public mining companies sold 30% of their Bitcoin reserves in the first four months of 2022 to survive the bear market.
Compass Mining and Core Scientific are just two examples of mining companies that had to sell out to pay for electricity. Mike Levitt, CEO of Core Scientific, spoke on behalf of all miners, CNBC:
“We mine Bitcoin to earn and produce, but costs, expenses and debt are in dollars. If Bitcoin returns to $ 35,000 and $ 40,000, we all cheer loudly. There is no doubt about it. “
Core Scientific is one of the largest cryptocurrency mining companies in the United States. The company sold 7,200 Bitcoins for $ 23,000 each in June, accounting for almost all of Bitcoin’s reserves.
The energy costs of mining operations have also affected some countries that were bullish on mining. Kazakhstan and Sweden are the latest examples of countries that have chosen to divert their mining power to other industries.
New mining technology
Samsung is one of the companies that tackled the energy problem of the mining industry. The tech giant recently announced the launch of a new 3-nanometer mining chip that is 45% more energy efficient.
The company will start developing chips in the second half of 2021 and plans to launch them by the end of the year. In addition, Samsung said it is working on even more energy-efficient 2 nanometer chips. Currently, the best mining hardware on the market is the Antminer S19X with a 5 nanometer chip.
