Bitcoin miners are having a rough time at the moment. They’re offloading the asset at increased rates and company stocks are slumping.
With BTC prices hitting a new bear cycle low on Nov. 22, the pressure on Bitcoin miners has never been greater.
On Nov. 21, Capriole Fund founder Charles Edwards observed that Bitcoin miners were selling aggressively. According to the chart, the sell-off has increased by 400% so far this month.
It is also the most aggressive selling seen in almost seven years, he said before adding:
“If price doesn’t go up soon, we are going to see a lot of Bitcoin miners out of business.”
Pressure Mounts on Bitcoin Miners
Bitcoin miners are facing a triple whammy at the moment. Hash rates are near their highest levels which makes it harder to mine the next block. This is good for network security but bad for miners. According to Blockchain.com, the network hash rate is currently 261 EH/s (exahashes per second). Furthermore, it hit a peak of 273 EH/s on Nov. 2.
Mining difficulty is also at peak levels making it harder to compete for the next block.
Energy prices are still sky-high in most places, compounding issues for Bitcoin miners. Paying too much for power drastically reduces profit margins. This will result in many mining operations either powering down rigs or going out of business.
The most recent one to do so is the Australian firm Iris Energy. As reported by BeInCrypto, Iris has defaulted on a $108 million debt and has been forced to shut down its hardware.
Bitcoin prices are the third factor that negatively impacts miners. On Nov. 22, the asset slumped to its lowest price since November 2020, hitting $15,650, according to CoinGecko.
All of these factors continue to pressure Bitcoin miners, making selling their only option, exacerbating the downward spiral.
Mining Company Stock Slumps
Publicly listed mining companies are also in dire straits at the moment as share prices slide. Canaan Inc. stock slumped to a two-year low of $2.52 in after-hours trading, according to Market Watch.
Riot Blockchain shares are also at a two-year low. They fell to $4.05 after the bell on Monday, down almost 94% from their all-time high.
Marathon Digital isn’t faring much better. Its stock fell to its lowest level since December 2020, trading at $6.26 after hours.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.