Miners continue to lose revenue as Bitcoin’s price falls – and they’re selling all the Bitcoin they’re mining.
In a Nov. 18 update, on-chain analytics platform Glassnode shared data showing that Bitcoin’s hash price hit an all-time low of $58,300 per exahash each day. The hash price estimates the revenues that miners generate for each unit of energy.
The troubled Bitcoin mining industry has not had any respite from a series of events this year that has sent crypto markets lower and lower. FTX’s demise last week added to this pressure as miners sold 8,250 BTC to strengthen their balance sheets.
“This leaves around 78k BTC in miner treasuries, and erases all balance growth in 2022,” said Glassnode.
The on-chain analytics firm further emphasized the scale of miner selling by noting that miners are now spending 135% of the coins they earn each day. This means that miners are selling more Bitcoin than they are mining to stay afloat.
“This implies that in aggregate, miners are distributing all ~900 freshly minted BTC, as well as an additional 315 BTC from their treasuries each day,” noted Glassnode.
“Many Bitcoin miners are now turning their rigs off. Bitcoin’s electrical cost has just been breached for the 2nd time only in 5 years. The electrical bill for the average miner is now greater than the income earnt,” tweeted the CEO of crypto fund manager Capriole, Charles Edwards, on Nov. 10.