Reading time: ~2 m
Cryptocurrency Research Institute Arcane Research has published statistics of public companies mining cryptocurrency and registered on the stock exchange. According to reports, they mined 3900 BTC in June, but increased the sale of previously mined Bitcoins by 400%.
The companies sold 14600 exchanges and over-the-counter deals last month, putting significant pressure on the cryptocurrency market, which was in the midst of panic sell-offs.
This was facilitated by a negative fundamental background, provided by record US inflation and a decline in the main economic indicators – the fall in China’s GDP and the unexpected increase in unemployment in Japan, the EU trade deficit, etc.
The growth of consumer prices in the United States and the European Union launched the traditional mechanism of struggle. The Fed and the ECB have cut programs to support the economy and raise rates, which in turn has cut off miners from investment. Their flow previously paid for operating expenses, allowing miners to accumulate mined BTC.
The fall in stock indices deprived the company of another tool for obtaining funds for development – the issue of additional issues of securities. Shares of Core Scientific and Bitfarms have fallen 85% and 77% since the beginning of the year. These companies lead by the number of BTC sold in the amount of 7202 and 3353 coins.
Marathon and Hut8 Mining sold the smallest volume in June, despite comparable investment losses. MARA shares lost 76%, HUT securities sank by 80%.
Public miners kept BTC sales low during the six months of the crisis. This shows the resilience of this business model, which has probably survived half of the current crisis. In the future, the appreciation of Bitcoin will return investors to stocks that look the most undervalued in the IT section of the stock market.
#Miners #times #increased #pressure #cryptocurrency #market
