Recent market trends, however, have caused a nosedive in the profitability of bitcoin mining, forcing miners to tap into their BTC reserves and sell to stay afloat.
With Bitcoin now trading below $30,000 at press time, miners are finding it more difficult to hold BTC without jeopardizing their ability to fund their operations.
According to Compass, miner flows to exchanges reached their greatest level since January, citing Coinmetrics data.
In its most recent earnings report, the miner stated that it sold 235 BTC in May, nearly all of its holdings, for a total of $8.8 million.
During an earnings call last month, Marathon Digital, one of the largest Bitcoin miners, said it might have to liquidate some of its bitcoin assets.
Bitcoin mining is still profitable, but with Bitcoin’s price now down more than 50% from its all-time high, the profit margin has shrunk significantly.
Until the market condition improves, it is likely to remain a tough time for Bitcoin miners to turn in profits.