Crypto Miners have accumulated $600M worth of Bitcoin since Feb. Bitcoin miners appear reluctant to sell their Bitcoin holdings as hashrate increases despite the recent sell-off.
Bitcoin miner are accumulating because the network hash rate continues to recover in keeping with on-chain analytics provider Glassnode.
In its Sept. 20 Week on Chain report, glassnode has stated that miner BTC balances are increasing, with wallets related to miners having stockpiled 14,000 BTC worth roughly $600 million over the past six and a half months.
The report also noted that the bull markets of 2020 and 2021 have seen miners hold onto a bigger portion of their rewards than in previous market cycles. Miners usually sell BTC to hide their expenses including electricity bills and hardware.
The trend of miner accumulation continued because the Bitcoin network hash rate recovered this past quarter.
Amid speculation regarding a wholesale Chinese miner exodus, Glasnnode reported that Bitcoin’s hashing power had slumped 51% to an area low of 90 Exahashes in late June in line with Glassnode.
Network hashing power has recovered 52% from to tag 137 Exahashes in line with a seven-day moving average. Hash rate recovery indicates that almost all mining operations have now relocated and are up and running again.
However, Bitcoin hash rate is currently sitting 34% below its all-time high of 184 Exahashes from May.
Despite the expanding mining treasuries and hash rate recovery, shares in publicly traded mining firms have pulled back because the broader financial markets retrace amid fears that Chinese property giant Evergrande may soon neglect its loans.
Riot Blockchain, which has been spending big on building a replacement data center in Texas and expanding its hashing capacity this year, has suffered a 2.4% slide within the price of its stock since the beginning of trading Sept. 20.
Competitors Marathon and Hive Blockchain are both down by a lower 1.5% since Monday morning, while shares in Hut 8 stocks have fallen by 5.4% over the identical period – rounding off the performance for every of the “Big Four” North American mining firms.
However, mining stocks have outperformed Bitcoin for the week up to now, with BTC tumbling quite 10% to trade at $42,730 at the time of writing, in keeping with CoinGecko.
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