Public Bitcoin miners offload 15K BTC as industry margins tighten

Publicly traded Bitcoin miners have disclosed that they sold over 15,000 BTC since last October, just ahead of the market’s all-time high. The downturn sparked a bear market, impacting industry profits, according to TheEnergyMag’s Miner Weekly newsletter.

Following this news, reports indicated that, as companies have reduced their Bitcoin holdings in recent months, the trend of holding BTC as a primary treasury asset, popularized during the 2024–2025 market surge, is losing momentum.

Notably, reports highlighted that various significant players in the mining sector were actively engaged in this sell-off. To support this claim, reliable sources confirmed that Cango sold approximately 4,451 BTC last month, representing approximately 60% of its total reserves. Moreover, Bitdeer allegedly sold all its BTC from its treasury the same month.

Other major players include Riot Platforms and Core Scientific, which executed several Bitcoin sales towards the end of last year and intend to sell about 2,500 of the cryptocurrency in the first quarter, respectively.

Several miners shift their focus towards the AI sectors amid challenges in the mining industry 

Regarding the current state of the crypto market, several analysts argued that what started as a firm commitment to holding BTC, commonly known as HODLing, is losing momentum among publicly traded miners. For them to sustain daily needs, reports highlighted that these miners now opt to embrace the development of AI infrastructure, a capital-intensive, high-appeal business area.

Some factors contributing to the decline in mining profit margins include stiff industry competition, rising energy prices, and lower Bitcoin prices. At this point, sources claimed that the 90% margins miners enjoyed in 2021 have disappeared, creating severe, life-threatening pressure on those relying solely on Bitcoin for survival.

Regarding those who have decided to shift their focus to the AI sector, analysts noted that this trend is accelerating as Bitcoin prices hover around $70,000. This figure is almost 50% lower than the peak reached last October.

To illustrate the intense nature of the situation, the analysts stressed that top-tier mining companies are liquidating or preparing to sell assets to fund their AI expansion.

In attempts to explain the current market situation, recent reports noted that several mining companies successfully boosted sales in the wake of the post-October Bitcoin crash, which had made profitability difficult. Collectively, these firms sold more than 15,000 Bitcoins in five months.

In a statement, Riot stated that, “the ongoing decline in bitcoin’s price might require them to sell more than expected so they can maintain enough cash flow for daily operations and working capital.”

On the other hand, Marathon Digital Holdings (MARA), historically recognized for aggressive Bitcoin acquisition, adopted a new operating strategy. In this new approach, the company revised its treasury policy, enabling the liquidation of held reserves rather than restricting sales to newly mined assets. Interestingly, this approach was adopted at a time when MARA held more than 53,000 BTC as of December 31, 2025.

In other words, this scenario demonstrates the end of the  HODLing era as miners are forced to sell their Bitcoin holdings due to profit pressures. At this particular moment, sources highlighted that the hashprice, representing essential miner revenue, has plunged to $30 per PH/s per day, according to a recent analysis of quarterly reports.

Given current market conditions, the majority of publicly traded mining firms are operating at or near zero-margin levels. Following this finding, TheEnergyMag noted that,  “Historically, the difference between hashprice and hashcost has been a major reason for treasury liquidations.” 

Uncertainties surrounding the mining industry as it suffers major debts 

In response to the current situation in the mining industry, several analysts conducted research and found that the recent downward trend differs from previous downturns. This is because a large number of miners began last year with major debts. 

The urge to fund large-scale AI infrastructure development alongside ongoing operational needs, largely driven by the need for massive data center capacity, prompted these miners to demonstrate heightened interest in credit lines, Bitcoin-backed loans, and secured bonds.

With this focus in mind, the three significant miners, Hut 8, MARA Holdings, and Riot, had pledged over 14,500 Bitcoin as collateral for loans towards the end of last year.

To break down the situation for better understanding, analysts explained that the loan-to-value ratio rises as BTC’s price declines. In simpler terms, sharp declines in valuation have increased the necessary collateral ratios, compelling firms to lock up more assets to meet loan requirements.

Meanwhile, it is worth noting that the marginal recovery in Bitcoin’s value to over $74k has not provided substantial relief to miners, whose operational pressures persist.