In order to make ends meet, public mining businesses had to treble bitcoin sales, according to their financial records.
In May of 2022, public mining firms sold 4,411 bitcoins. This is four times the monthly average for January through April 2022. This is proven by the financial statements provided to the regulator by publicly traded corporations.
CoinMetrics data also reveals that cryptocurrency miners have begun transferring funds to exchange wallets. Despite the lack of trustworthy information regarding the movement of miners’ coins, it is evident that companies mining digital coins are on the verge of extinction.
Initially, miners were compensated 50 BTC for every block mined. However, every four years the compensation has been cut in half. They are now paid 6.25 Bitcoin. Every 10 minutes, on average, a new block is formed, which implies that around 900 bitcoins are minted every day. They also collect commissions for processing transactions.
In prosperous times, miners have sufficient funds. They have sufficient funds to cover power costs and other running costs, therefore they want to conserve money.
Now, however, the scenario has changed: power costs are increasing, and miner revenues and cryptocurrency prices are plummeting. Under these circumstances, businesses are compelled to swap BTC for fiat currency in order to pay for power and staff wages.
Approximately 46,500 BTC (worth $1.5 billion at the time) were kept in the wallets of public miners as of the end of May. Companies will likely need to grow bitcoin sales in order to fund their operations.
The sale of coins by miners will raise the number of coins in circulation and boost the market’s negative pressure.
At the time of publishing, the primary cryptocurrency is trading at $20,108. Previously, the value of the cryptocurrency dropped to $18,700, the lowest level since December 2020. The market capitalization for digital assets plummeted to $880 billion, a loss of about $500 billion in one week.