Their BTC piggy bank is full to bursting – Ever since China decided to scuttle its own bitcoin mining industry, miners in the rest of the world have been celebrating, as the drop has made it easier for them to mine precious BTC. This is especially true in North America, where mining farms are springing up like mushrooms. And these companies are additionally rather the type to HODL their bitcoins firmly.
It was a great stupor followed by a great migration that characterized the early summer of 2021, after China made good (for real this time) on its threats to ban crypto mining.
Other miners across the planet have consequently seen a rapid decline in the difficulty of mining as devices formerly in China relocate and are relocated elsewhere.
As a report from The Block shows, the 6 largest North American mining companies – Riot, Marathon, Bitfarm, Hut8, Argo, and Bit Digital – have mined no less than 10,500 BTC since the start of 2021, a total of not far short of $500 million at the time of writing.
In fact, as seen below, only Bit Digital has seen a decrease in bitcoin production – the bars on the left being the 1st and 2nd quarters (3 months) while the bars on the right each represent a single month (July and August). It must be said that Bit Digital had much of its production in China, and the company had to rush over 14,500 machines to North America
Amount of bitcoins mined by each mining company – Source: The Bock
A war chest of $830 million in bitcoins
Also according to The Block’s data, these Western miners don’t seem to want to part with their bitcoins easily.
Indeed, it can be seen that since the beginning of the year, these companies have greatly expanded their stock of BTC, to the point of accumulating an estimated total of 18,000 BTC in their treasury, or about $830 million.
The Marathon Group is the richest in bitcoins, as it now owns 6,995 units of the king of cryptocurrencies alone, but it is also the one that is making the most impressive progress, as the group held only 126 BTC at the end of 2020.
Cumulative amount of bitcoins owned by each mining company – Source: The Bock
These 6 companies together account for 5% of the total revenue generated by bitcoin miners since the beginning of 2021.
This unexpected flood of bitcoins, the immediate result of the forced abandonment of mining in China seems to have led to a phase of BTC accumulation by miners outside China. It should be noted, however, that with the price of BTC already well up since the low point of July 20 (when BTC briefly fell below $ 30,000), some miners have recently begun to take their profits by reselling some of their production. For now, however, the ratio of production to sales is trending toward equilibrium, perhaps in good part due to the very firm HODL of North American miners.
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