Key insights:
Bitcoin miners sold a total of $485 million in BTC over a 12-day span concluding on Aug. 23.
Despite these sales, the network hashrate and fundamentals of Bitcoin remain robust.
On Thursday, Bitcoin (BTC) reclaimed the $112,000 level, bouncing back from a six-week low reached just two days earlier. However, traders are cautious as Bitcoin miners have been selling coins at their highest rate in nine months. This raises the question of whether this indicates an onset of deeper issues or if other factors are influencing these recent sales.
Data from Glassnode reveals that miner wallets showed consistent reductions between Aug. 11 and Aug. 23, with minimal signs of renewed accumulation since that time. The last notable streak of withdrawals exceeding 500 BTC daily was on Dec. 28, 2024, following Bitcoin’s repeated struggles to maintain levels above $97,000.
During the most recent sell-off, miners offloaded 4,207 BTC, amounting to approximately $485 million, in the 12 days up to Aug. 23. This contrasts with a previous accumulation period from April to July, where miners added 6,675 BTC to their reserves. Miner balances now total 63,736 BTC, valued at over $7.1 billion.
Although these outflows are relatively minor compared to the holdings of companies like MicroStrategy (MSTR) and Metaplanet (MTPLF), they can fuel market speculation and fears. Should miners encounter tighter cash flows, selling pressures may increase unless profitability improves.
While Bitcoin has appreciated by 18% over the last nine months, miner profitability has declined by 10%, according to data from HashRateIndex. Increased mining difficulty and a drop in demand for on-chain transactions have put pressure on profit margins. The Bitcoin network continues to adapt to maintain an average block interval of 10 minutes, yet profitability is still a concern.
The current Bitcoin hashprice index is at 54 PH/second, down from 59 PH/second a month ago. Nonetheless, miners have reason to be optimistic: this indicator has substantially improved from levels observed in March. According to NiceHash data, even Bitmain’s S19 XP rigs from late 2022 remain profitable at $0.09 per kWh.
Bitcoin miners adapt amid AI competition
Some investor apprehension is attributed to a growing focus on artificial intelligence infrastructure. This trend gained momentum after TeraWulf (WULF) secured a $3.2 billion deal with Google in return for a 14% equity stake. These funds will help expand TeraWulf’s AI data center campus in New York, expected to commence operations in late 2026.
Related: Bitcoin projected to reach $1.3M by 2035 as institutional demand increases–Bitwise
Other miners are also pivoting. The Australian company Iren, formerly Iris Energy, is fast-tracking its acquisition of Nvidia GPUs and constructing a liquid-cooled AI data center in Texas, alongside a new facility in British Columbia capable of housing up to 20,000 GPUs. Meanwhile, Hive, previously known as Hive Blockchain, has allocated $30 million for expanding GPU-powered operations in Quebec.
Despite the AI buzz, Bitcoin’s core fundamentals remain strong. The network hashrate is approaching an all-time peak at 960 million TH/second, showing a 7% increase over the past three months. This resilience mitigates concerns regarding miners’ net outflows and the lack of profitability gains across the industry.
There is currently no indication that miners are in immediate distress to liquidate their holdings, and even if selling persists, inflows into corporate reserves should sufficiently balance out any impact.
This article is intended for general informational purposes only and should not be construed as legal or investment advice. The opinions expressed here are solely those of the author and do not necessarily reflect the views or opinions of Cointelegraph.
