22. September 2023

• Bitcoin miners have been hit hard during the bear market in 2023.
• Mining firms have had to sell newly minted Bitcoin to cover operational costs.
• Despite the difficult market, Bitcoin mining stocks have seen impressive gains this year.

Bitcoin Miners Bruised by Bear Market

Bitcoin miners have been forced to sell newly minted BTC to cover operational costs during one of the toughest bear markets for miners on record. The industry has had an eventful year, scoring a staggering $184 million from transaction fees in Q2 as BTC price rebounded and BRC-20 tokens gained traction. However, miners have also had to continue selling mined BTC to cover operational costs as they attempt to claw their way out of a prolonged bear market.

Record Sales of Bitcoin

Analysts believe that miners are engaging in hedging activities through derivatives and over-the-counter orders, transferring funds through exchanges for other reasons. In June 2023, miners sent a record $128 million worth of Bitcoin to exchange in order to cash out, cover costs and lock in profits.

Mining Firms Adapting Strategies

Jaime Leverton, CEO of Hut8, highlighted the company’s efforts to close-off a merger with USBTC which has hampered its ability to raise capital through an at-the-market offering. Due to this, Hut8 has sold part of its production earlier this year as part of their treasury strategy but plans on revisiting it once the merger is complete.

Mining Stocks Still Bullish

Despite the tough conditions faced by miners recently, stocks in prominent mining firms have still seen impressive gains this year and far exceeded Bitcoin’s market value performance. The top nine public Bitcoin mining firms saw their market capitalization increase by 257% from the start of 2023. This suggests that despite difficult trading conditions, there is still hope for bullish sentiment within the sector yet.


Overall it appears that despite facing some harsh conditions due to the bear market over recent months, Bitcoin mining remains bullish and shows no signs of slowing down just yet as stock prices remain high and new strategies are being developed daily by various firms in order adapt accordingly during these turbulent times