A number of mining companies, such as Core Scientific, Argo Blockchain and Riot Blockchain have part of their bitcoin (BTC) assets sold during the current bear market. Bitcoin miners have it with the sky-high energy costs and low bitcoin price namely very heavy. However, there are also mining companies that add more bitcoins to their reserves. They believe in the HODL (hold on for dear life) strategy. A good example of this is Canadian bitcoin miner Hut 8 Mining Corp. Hut 8 is one of the largest public holders of bitcoin according to industry data.
Hut 8 didn’t sell a single bitcoin
The mining company made its figures on Friday familiar. It became clear that the company generated 330 bitcoins in July. This is a production of 10.61 bitcoin per day. After the month of July, the total reserves amounted to 7,736 bitcoin. As part of their strategy to accumulate more bitcoins, the Alberta-based company has added all of their mined bitcoins to its reserves. Hut 8 is convinced that bitcoin will rise in price again and prefers to sell their bitcoin for a higher price when the market picks up again.
The HODLing of bitcoin by mining companies goes against the trend of mining companies that actually sell their bitcoins. This is how bitcoin mining company sold Core Scientific from Texas in June 7,202 bitcoin at an average price of $22,000 to buy new ASIC mining hardware to pay to settle debts. The profit from the sale was about $44 million. Bitcoin mining company Argo Blockchain Sold in July 887 bitcoin to enter into a loan agreement with Galaxy Digital and fund its business. In addition, Riot Blockchain reduced its bitcoin holdings for the third consecutive month in June.
A bullish signal for bitcoin?
When mining companies adopt a HODL strategy, it is generally a bullish signal for bitcoin. Quite a bit of capital is needed to mine bitcoin in an efficient way. The number of bitcoins they accumulate per month and have in their reserves is significant. As a result, the largest bitcoin miners have a lot of influence on the market. By not selling, the supply of bitcoin is significantly lower and it is more likely that the price of bitcoin will rise.
