Miners sold 14K Bitcoin worth $300M on July 15, largest dump since January

Must read

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

Miners sold 14K Bitcoin worth $300M on July 15, largest dump since January Miners sold 14K Bitcoin worth $300M on July 15, largest dump since January Zeynep Geylan · 16 seconds ago · 2 min read

Data from CryptoQuant shows that Bitcoin worth over $300 million was sold by miners within a 24 hour period on July 15.

2 min read

Updated: July 19, 2022 at 1:12 pm

Miners sold 14K Bitcoin worth $300M on July 15, largest dump since January

Cover art/illustration via CryptoSlate

Numbers from blockchain analytics firm CryptoQuant showed that miners sold 14,000 Bitcoin (BTC) worth roughly $300 million on July 15, the largest amount sold since January.

A sell-off trend among miners started in early June, and the amount sold has been growing.

Energy problem

Miners are mostly forced to sell because the bearish Bitcoin prices don’t compensate for the energy spent mining.

According to numbers, all mining equipment produced before 2019 is not profitable as long as Bitcoin remains around $20,000. In addition, the Russia-Ukraine conflict has also increased energy prices, which is not helpful to the miners.

A recent study showed that 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 only two examples of mining companies that had to sell out to pay their electricity bills. Core Scientific’s CEO Mike Levitt spoke for all the miners and told CNBC:

“We mine and earn or produce bitcoin, but our costs, expenses, and liabilities are in dollars. We would all be cheering loudly if bitcoin were to get back to $35,000, $40,000. There is no doubt about that,”

Core Scientific is one of the largest crypto mining companies in the U.S. The company sold 7,200 Bitcoin for $23,000 each in June, making up almost all its Bitcoin reserves.

Energy costs of mining operations also affected some countries that were bullish on mining. Kazakhstan and Sweden are the most recent examples of countries that chose to re-direct the power devoted to mining operations towards other industries.

New mining technology

Samsung is one of the companies that addressed mining’s energy problem. The tech giant recently announced the launch of its new 3-nanometer mining chip, which will be 45% more energy efficient.

The company started working on the chip in late 2021 and is expected to launch it by year-end. Moreover, Samsung also said that it is working on a  2-nanometer chip, which will be even more energy efficient. Currently, the best mining hardware in the market is the Antminer S19X which has a 5-nanometer chip.

More articles

Latest article

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

Judge orders SEC to turn Hinman documents over to Ripple Labs after months of dispute

U.S. District Court Judge Analisa Torres overruled the SEC’s second attempt to withhold the documents relating to former Division Director William Hinman, who...