Bitcoin Miners Resume BTC Sales as Rising Costs Pressure Profitability

Bitcoin miners are beginning to sell their Bitcoin holdings once again, signaling a shift in strategy as profitability concerns mount. The latest actions by Marathon Digital Holdings (MARA) and Core Scientific highlight the growing trend of miners liquidating reserves to stay operational in a challenging market.

MARA’s Policy Shift and Bitcoin Sale

BTC miner MARA recently moved 298 BTC to Cumberland, just after announcing a new policy allowing it to sell its Bitcoin reserves. This move marks a change in the company’s strategy, signaling that Bitcoin miners are now more willing to liquidate holdings to support their operations and strengthen their balance sheets.

The recent sale follows MARA’s filings that reveal their mining costs are significantly high. According to the company’s estimates, the average cost of mining a single Bitcoin is approximately $70,027. This number includes the cost per petahash per second (PH/s) and operational hash rate. With around 23.3 BTC mined daily, this hefty cost structure raises concerns for profitability.

Source: X

Other Bitcoin miners like Core Scientific have also engaged in similar strategies. Core Scientific recently sold 2,174 BTC that had been accumulating since December 2024. These sales reflect a broader trend where miners are liquidating some of their holdings to fund other operational needs, such as AI infrastructure expansion, while maintaining balance sheets.

Rising Mining Costs and Profitability Concerns

Bitcoin mining isn’t cheap, and the price of mining operations is climbing. As seen with MARA’s filings, the cost of producing Bitcoin is averaging around $70,027 per coin. This cost is driven by factors such as hardware efficiency, electricity costs, and power usage effectiveness (PUE), all of which have a significant impact on mining profitability.

Source: X

Miners operating more efficiently with advanced hardware and lower power costs can produce Bitcoin for around $45,000 per coin. However, the profitability of these operations heavily depends on the location and the costs associated with running the infrastructure.

As miners continue to face these rising operational costs, many are reconsidering their strategies and selling off some of their Bitcoin holdings to offset these expenses. This trend has become more apparent in recent months, as several miners, including MARA, have chosen to liquidate part of their Bitcoin reserves.

Geopolitical Tensions and Market Uncertainty

The broader cryptocurrency market is facing a period of heightened uncertainty, with geopolitical tensions and macroeconomic factors influencing investor sentiment. Bitcoin traders, including those on Polymarket, have become more cautious about the future price of Bitcoin. For instance, traders have assigned only an 51% probability that Bitcoin will reach $90,000 by the end of 2026.

Source: Polymarket

These uncertain market conditions are contributing to the decision of many miners to sell off their Bitcoin holdings. The behavior of these traders suggests that scarcity alone may not be enough to drive the price of Bitcoin higher. Moreover, currently, they are assigning only 48% odds that Bitcoin will dip to $45,000, indicating a cautious outlook. 

Despite Bitcoin reaching the milestone of 20 million coins mined, signaling scarcity, the market remains volatile. This dynamic is placing pressure on miners who must carefully manage their reserves to avoid further losses.

Apparent Demand and Market Consolidation

Following a large sell-off in the Bitcoin market, Apparent Demand briefly showed signs of recovery. This brief uptick indicated that opportunistic buyers were stepping in after the price decline. However, the recovery was short-lived, with demand quickly turning negative again. The lack of sustained buying pressure suggests that market participants remain cautious and unwilling to accumulate aggressively at current levels.

The CryptoQuant Bull Market Cycle Indicator, which tracks market behavior, signals that Bitcoin is in a phase typically associated with bear market consolidation. This phase is marked by short-term volatility and sideways price action, which can be psychologically taxing for investors. Many participants lose interest or reduce exposure during these periods, leading to a slower recovery or further declines.

Additionally, Long-Term Holder SOPR (Spent Output Profit Ratio) has shown signs that even long-term Bitcoin holders are beginning to realize losses. This metric, which has dropped below the key threshold of 1, indicates that prolonged uncertainty is affecting even the most steadfast investors. Historically, this phase coincides with the redistribution of Bitcoin from long-term holders to new participants who have lower cost bases.