Bitcoin Miners Forced to Sell as Crypto Market Stagnates

According to crypto data platform Coin Metrics, the value of Bitcoin earned by miners and sent to exchanges almost doubled in May to a local high of approximately $400 million.

Increased outflows often indicate that miners are moving their coins to exchanges in order to sell them, but are not a direct measure of miners selling.

Cathedra Bitcoin recently released its Q1 2022 financial results, revealing that the company had sold $8.7 million worth of Bitcoin in May to insulate itself from further price declines.

According to data from BitInfoCharts, the mining profitability ratio has plunged since the start of the year, dropping by around 50%.

This will make mining blocks on the Bitcoin network slightly easier and provide a small windfall for miners who can keep their mining operations running profitably.

To add to the bad news for crypto miners, the New York State Senate recently passed a two-year moratorium on Bitcoin mining operations.

Elsewhere, ExxonMobil Corp., the largest oil producer in the United States, is piloting a program to use oil well flare gas to power Proof-of-Work mining.

While many individual Bitcoin mining companies have been forced to sell their coins, the industry as a whole appears to be growing as fast as ever.

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