According to Bloomberg, crypto-mining companies, including Bitcoin miners, have been facing increased selling pressure. These companies have managed to offset their losses by earning more from transaction fees, which serve as an additional revenue stream apart from the mining subsidy. The introduction of several memecoins on Bitcoin following the halving led to a surge in fees as users were eager to pay miners at a higher rate to prioritize their transactions. However, these fees saw a significant drop as the memecoin frenzy subsided.
Kaiko, in a report released on Monday, warned that if miners were compelled to sell even a small portion of their holdings in the coming month, it could negatively impact the markets. The report also noted that trading activity usually slows down and liquidity decreases during the summer months. Despite selling most of their reserves during the 2022 crypto meltdown, Bitcoin miners have been holding more over the past two years, thanks to a strong rebound in the digital-asset market.
Two of the largest public Bitcoin mining companies, Marathon and Riot, hold 17,631 Bitcoin worth just over $1.1 billion and 8,872 Bitcoin worth over $500 million, respectively, as per Kaiko's report. Bitcoin's value increased by about 2% to approximately $62,730 on Monday, marking a 15% decrease from its all-time high of nearly $74,000 achieved in March. Marathon's shares remained relatively stable at around $17.05, reflecting a 27% decrease this year. Riot's stock, priced at $9.46, has also seen a decline of about 40% since the beginning of 2024.