Bitcoin Miners Enjoy Respite in 2023 Despite 12.1% YoY Drop in BTC Holdings

Overview

• Bitcoin miners are beginning to enjoy some respite in the current year after struggling in 2022.
• The market has seen a little BTC distribution from miners in January 2023 compared to the previous year.
• Miners appear to be in a healthier position compared to the previous year as BTC’s price has risen by around 50%, and hash rate hit a new all-time high of 300 TH/s.

Bitcoin Miners’ Holdings

As of Jan. 2022, Bitcoin miners held 36,003 BTC, with mining firms like Core Scientific, Riot, Hut8, Marathon, and Bitfarms holding over 30,000 coins. However, the landscape appears to have changed in the current year as Hut 8, Marathon, and Riot are now the dominant miners, holding 87% — 27,760 BTC — of the miners‘ BTC holdings. Bitfarms and Core Scientific fell off as they struggled in 2022 — the latter filed for bankruptcy while the former dealt with debt obligations.

Miners Selling their BTC at Low Levels

According to Glassnode’s data analyzed by CryptoSlate shows that miners are selling their BTC to exchanges at extremely low levels compared to previous years due profitability is beginning to return to the mining industry as BTC’s price has risen by around 50% in 2023 . This suggests that miner’s financial health is improving when compared with last year.

Rise In Shares Of Different Miners

The shares of several miners have risen by three figures on the year-to-date (YTD) metric. Miners like Hut8, Riot, Iris, Marathon etc., have all seen their shares increase by over 100% YTD which indicates an overall improved financial health for public bitcoin miners despite 12.1% YoY drop in its holdings.

Mining Bitcoin is Cheaper

The Difficulty Regression Model (DRM), a metric used measure cost of mining Bitcoin is currently cheaper which presents an opportunity for more people to enter into bitcoin mining business with minimal risks involved and further improve public bitcoin miner’s financial health moving forward.