Bitcoin (BTC) mining companies resume selling their BTC

This result marks the highest monthly liquidation rate since last October 2024.

The publicly traded Bitcoin mining companies have resumed selling their BTC starting from March, according to what reported. This is a real trend reversal, compared to the strong HODL strategy implemented during the months of the presidential elections, in the midst of the BTC bull run.

Specifically, there would be as many as 15 publicly listed mining companies that collectively sold over 40% of their total BTC production last month.

CleanSpark, one of the leading BTC mining companies in the USA, has itself announced that it will change its BTC hodler strategy started in mid-2023.

In this regard, the CEO of CleanSpark, Zach Bradford, stated:

“With our Bitcoin holdings exceeding 12,000, valued at approximately 1 billion dollars, we believe it is the right time to evolve from the nearly 100% holding strategy adopted in mid-2023 and return to using a portion of our monthly production to support operations. This represents a significant strategic distinction compared to many of our peers, who continue to rely on share dilution to finance operational costs or on increasing leverage to grow Bitcoin reserves.

We consider our approach deliberately strategic rather than ideological, especially now that we have reached our current size. While remaining committed to Bitcoin as a long-term asset, we believe that a more effective way to increase shareholder value is a balanced approach between monetizing new production and building long-term holdings.”

Other companies like HIVE, Bitfarms, and Ionic Digital have already sold more than 100% of their March BTC production.

Bitcoin Mining: the publicly traded companies stop being HODLer of BTC

This trend change from HODL of BTC to seller of BTC suggests that miners might respond to the narrowing profit margins between the low levels of the hash price and the growing uncertainty of the trade war.

Not only that, this recovery in sales of Bitcoin by publicly traded mining companies is also marking the highest monthly liquidation rate since October 2024.

In fact, last October, the liquidation reports reached similar peaks, but the sales largely eased with the rise in BTC prices, until the end of the year.

With the Bitcoin hashprice near the cycle lows and transaction fees in the blocks down to 1.1%, mining companies seem to once again rely on their BTC reserves to support operations and bolster liquidity.

The increase in BTC sales by these companies could also be due to the increase in capital expenditures in the sector.

Various large mining companies have announced the expansion of infrastructures, the upgrade of ASICs, or diversification into the high-performance computing sector, all activities that require capital in a more challenging context after the halving.

Arizona advances in regulation

Recently, regarding Bitcoin mining, there has been talk about the approval by the Arizona Senate of the HB 2342 law that protects miners.

The vote was 17 in favor and 12 against, and therefore, the law now passes into the hands of the governor for final approval.

Specifically, the new law HB 2342 aims to prevent any city or county from imposing zoning or usage restrictions on individuals who carry out BTC mining or operate blockchain nodes in their own homes.

More than the companies, therefore, in Arizona the aim is to protect the freedom of individuals for the mining activity from the threat of local government.