Bitcoin Miners Sell $485M BTC, Network Stays Robust Amid Uncertainty

Bitcoin Miners Accelerate $485 Million BTC Sell-Off Amid Profit Squeeze, Shift Focus to AI Data Centers

  • Bitcoin miners sold $485 million in BTC between August 11 and August 23.
  • Bitcoin’s network hashrate and core fundamentals remain strong despite increased selling.
  • Miner profitability dropped 10% in the past nine months, even as Bitcoin’s price climbed 18%.
  • Some mining firms are shifting operations to Artificial Intelligence (AI) data centers.
  • Miner reserve sales are small compared to large corporate allocations, limiting broader market impact.

Bitcoin miners sold $485 million in Bitcoin during a 12-day stretch ending on August 23, marking the fastest selling pace in nine months. The selling occurred even as Bitcoin bounced back to above $112,000 after falling to a six-week low just days before.

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According to Glassnode, wallets linked to miners saw steady BTC outflows during this period, totaling 4,207 BTC. Miner reserves now stand at 63,736 BTC, valued at more than $7.1 billion. From April to July, miners had instead accumulated 6,675 BTC, but the recent trend shows a return to net selling.

The previous occurrence of such significant BTC withdrawals by miners was on December 28, 2024, when Bitcoin failed to stay above $97,000. These outflows have raised concerns, but Glassnode data indicate that the volume is limited in comparison to purchases by companies like MicroStrategy and Metaplanet. Selling by miners may lead to speculation among traders but remains a small portion of total market activity.

Miner profitability has become more challenging. Over the last nine months, Bitcoin’s value rose 18%, but mining profits fell 10%, according to HashRateIndex. This drop comes as mining competition and technical difficulty increase, along with reduced revenue from network transactions. The Bitcoin network hashprice index is at 54 PH/second, down from 59 PH/second a month earlier, but has gained since March. Mining rigs such as the Bitmain S19 XP remain profitable at electricity costs of $0.09 per kilowatt-hour, per NiceHash data.

Some mining companies are responding to tighter margins by shifting focus to artificial intelligence. TeraWulf made a $3.2 billion deal with Google to expand an AI data center campus in New York. Other miners, including Australian company Iren and Hive, are investing heavily in AI hardware and data center expansions in North America.

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Despite these industry moves, Bitcoin’s underlying metrics are stable. The network hashrate, which measures computing power securing the blockchain, is nearing an all-time high at 960 million TH/second, up 7% in three months, according to Blockchain.com. There is no evidence of widespread or urgent sales by miners at this time, and large corporate inflows are sufficient to absorb these outflows.

This article is for general information only and is not intended as legal or investment advice. For additional data and analytics, visit Glassnode and HashRateIndex.

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