Amid a painful cryptocurrency-segment recession, all publicly tracked miners of Bitcoin (BTC), the largest cryptocurrency, were forced to market-sell their reserves. As such, some top mining entities released more BTC onto the market than they managed to mine in 2022.
Bitfarms liquidated 156% of BTC produced
According to statistics by The Miner Mag tracker, two public mining entities, Bitfarms and Core Scientific, got through the most devastating selling of their assets in 2022.
Bitfarms and Core Scientific were the top two sellers of #BTC among public #Bitcoin miners in 2022.$BITF and $CORZ liquidated 156% and 136% of their productions last year, respectively.— TheMinerMag (@TheMinerMag_) January 3, 2023
Bitfarms Limited (NASDAQ: BTF) sold 156% of its production; thus, it sent to exchanges 56% more Bitcoins (BTC) than it mined. Meanwhile, Core Scientific (FRA: 7ZD0) sold 136% of its production, The Miner Mag says.
It should be noted that both Bitcoin (BTC) mining moguls found themselves in cold water in December. As covered by U.Today previously, Core Scientific filed for Chapter 11 bankruptcy protection in Texas on Dec. 21.
Its rival Bitfarms received a warning notification from Nasdaq as its stocks are changing hands below $1 for 30 consecutive trading days. The management has only 180 days to get things back to normal: BITF is one step away from being delisted by the exchange.
Both Bitcoin (BTC) mining blue-chips went public in 2021.
Two waves of aggressive selling
The Miner Mag indicated two phases during which BTC selling pressure was the most aggressive. The first one (the largest) coincided with the aftermath of Terra, Voyager, Celsius and 3AC collapses in June 2022.
The second one shocked the markets in December 2022, when both firms struggled with the effects of the FTX drama and legal problems. In 2022, Bitcoin (BTC) lost over 65% of its value.
Leading cryptocurrency analytical firm Messari foresees that the industry might be on the eve of another recession should more public Bitcoin (BTC) miners file for bankruptcy.