Bitcoin holdings by miners hit a record low as revenue declines

Bitcoin miners are frantically depleting their reserves to shore up their balance sheets in the face of a severe decline in revenue efficiency.

According to data from CryptoQuant, since November 21, miners have moved more than 30,000 Bitcoin, equivalent to about $2.6 billion, out of their wallets.

The Bitcoin mining industry enters survival mode as reserves hit record lows

As a result of this outflow, the total reserves held by miners have dropped to just 1.803 million BTC—the lowest level ever recorded.

Khai mining | Source: CryptoQuant

This sudden liquidity event shows miners are shifting from accumulation strategies to prioritizing survival, forced to sell assets to cover operating costs as cash flow dries up.

The main driver behind this wave of selling is the sharp decline in the economic efficiency of Bitcoin mining.

According to data from Hashrate Index, Bitcoin’s hashprice—a metric reflecting daily revenue per unit of computing power—has plunged more than 50% in recent weeks, hitting a record low of $34.49 per petahash per second.

Hashprice Bitcoin in the past year | Source: Hashrate Index

For context, even during the 2021 China mining ban or the depths of the 2022 bear market, this metric rarely fell below $50.

The current hashprice means that, except for the most efficient operators, the cost of producing a new Bitcoin now exceeds its market price.

The hardship is further exacerbated by the mismatch between Bitcoin’s price and network difficulty. Even though Bitcoin’s price has dropped 22% in the past month, trading around $86,075, the network’s total computing power remains high, exceeding one zettahash.

This shows that large, publicly listed miners with strong financial backing continue to operate next-generation mining rigs despite negative profit margins. They are essentially subsidizing production by issuing shares or tapping into cash reserves.

This strategy aims to eliminate smaller, private competitors who lack access to market capital.

Given this situation, analysts warn that if Bitcoin’s price does not recover soon, the mining industry may face a prolonged wave of capitulation.

In that case, struggling miners may be forced to liquidate not only their Bitcoin holdings but also their physical infrastructure.

Mr. Giao