Last year, two publicly traded Bitcoin (BTC) mining firms were the source of intense selling pressure.
Publicly traded Bitcoin miners sold almost all of the coins they had created in 2022, which sparked a debate about whether or not the sales were “a continual headwind” for the price of bitcoin.
The largest cryptocurrency (BTC), was compelled to liquidate its reserves on the open market. As a result, some of the biggest mining companies released more BTC onto the market than they were able to mine in 2022. Bitfarms sold 156% of the BTC generated. The Miner Mag monitoring statistics show that Bitfarms and Core Scientific, two publicly traded mining companies, survived the most damaging asset sales in 2022.
156% of the generated BTC was liquidated by Bitfarms. The Miner Mag Tracker’s statistics show that in 2022, Bitfarms and Core Scientific, two public mining companies, survived the most disastrous asset sales.
By selling 156% of its output, Bitfarms Limited (NASDAQ: BTF) remitted 56% more Bitcoins (BTC) to exchanges than it mined. According to The Miner Mag, Core Scientific (FRA: 7ZD0) sold 136% of its output. It should be recalled that in December, both powerful Bitcoin (BTC) miners found themselves in hot water. As previously reported by U.Today, Core Scientific submitted a Chapter 11 bankruptcy petition in Texas on December 21.
Nasdaq sent a warning to Bitfarms, a competitor, whose shares had been trading for less than $1 for 30 straight trading days. The management has only 180 days to restore order since BITF is about to lose its listing on the exchange. In 2021, both of the top Bitcoin (BTC) mining companies went public. There were two waves of pushy selling. The aggressiveness of the selling pressure on BTC was seen in two periods, according to The Miner Mag. The first (and biggest) occurred on June 2022, immediately following the collapses of Terra, Voyager, Celsius, and 3AC.
The second one, which both corporations grappled with as a result of the FTX drama and legal issues, startled the markets in December 2022. Bitcoin (BTC) lost more than 65% of its value in 2022. Related Due to potential bankruptcies in the mining sector, Bitcoin may experience selling pressure. If additional publicly traded Bitcoin (BTC) miners declare bankruptcy, the industry could be on the verge of another downturn, according to leading cryptocurrency analytics firm Messari.
The year 2022 was a dreadful one for mining bitcoins. The Bitcoin network kept creating new blocks throughout it all, and the total hashrate slowly increased. However, the scenery was mostly gloomy. Though not assured, it appears probable that the worst is behind the miners. Things could keep getting worse in the market But one thing is for certain: the miners who make it through this market will be the most battle-tested ever.