Bitcoin miners sold more BTC than they produced in April, reaching the highest sell-off rate since the 2022 bear market. According to TheMinerMag, publicly traded miners sold 115% of their production, marking a significant record. 

This aggressive selling came just before Bitcoin hit an all-time high of $109,000 in May. However, this price surge did not deliver the expected revenue increase for bitcoin miners. Rising hashrate and declining transaction fees significantly reduced bitcoin miners income. As a result, many companies rapidly sold off their reserves to stay afloat. Notably, the 15,000 BTC sale on April 7 was the third-largest outflow of the year. 

Hashrate Rises, Profitability Declines 

Analysts Jonathan Petersen and Jan Aygul stated, “BTC mining profitability fell 6.6% in April due to a 6.7% increase in network hashrate.” This statement clearly highlights the challenges faced by the industry. 

According to a Jefferies report, U.S.-based publicly traded mining companies produced 3,277 BTC in April, a notable decline from 3,534 BTC in March. Their share of the network also dropped from 24.8% to 24.1%. Hashprice (earnings per unit of computing power) fell from $63/PH/s in December to $55/PH/s in April. This decline directly impacted mining revenues, forcing companies to sell BTC. 

Bitcoin Nears $110K as Institutional Interest Surges

Despite these challenges, some companies continue to expand capacity. CleanSpark increased its hash power to 42 EH/s, maintaining its growth strategy. MARA Holdings, with 57.3 EH/s, remains the industry leader. However, these investments often create more operational pressure in the short term rather than boosting revenue. Still, they stand out as a key strategy for firms aiming for long-term positioning. Rising energy costs, tax pressures, and intensifying competition continue to challenge mining companies. Nevertheless, Bitcoin’s price increase still offers promising signals for the sector. 

The high rate of BTC sales by miners in April is a clear indicator of market pressure. Declining profitability, rising hashrate, and low transaction fees pushed companies to sell more than they produced. 

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An analyst’s positive assessment indicating a stock will surpass its market or sector performance is known as an outperform rating. On the other hand, a market performance rating is a neutral evaluation expressing the predicted average performance.

Five main criteria form the foundation of the assessments: production and hash rate, operational and energy efficiency, power, hash costs, and the artificial intelligence strategy of every organization.

Bernstein claims that Marathon, Core Scientific, and CleanSpark are the three biggest bitcoin generators; the latter two particularly stand out with their realized hash rates. Riot is trailing in output and efficiency at the same time; last month, power credits helped to mitigate this.

Regarding operational and energy efficiency, Bernstein asserts CleanSpark and IREN “are in the sweet spots of energy efficiency and realized hash rate/uptime.” By switching to a self-mining approach, Marathon is also seen by the analysts as enhancing its uptime efficiency.

Regarding operating power capacity, Bernstein pointed out Riot and Core Scientific. IREN may, however, catch up going forward since it apparently “has two mega sites in the works” in Texas.

Thanks mostly to low power costs and good uptime, Core Scientific is also the “best in class” when it comes to hash cost. While Marathon keeps striving to lower its hash cost, Riot and CleanSpark lead Core Scientific in this measure.

Lastly, having committed large funds to data centers, Core Scientific is “a clear leader on AI strategy,” Bernstein notes. Thanks to its Texas mega sites being open for agreements with AI hyperscalers and the hire of Morgan Stanley to investigate AI deals for these sites, the analysts found IREN to be “a promising” narrative regarding AI/HPC.

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Excellent Development and Strategic Expansions

As of June 30, the Nevada-based miner sold just 8 of the 445 Bitcoin it produced, therefore boosting its total Bitcoin holdings to 6,591 BTC – value more than $4 billion at current rates. CEO Zach Bradford in a July 2 statement says CleanSpark’s hash rate now is 20.4 EH/s, more than twice what it was in December.

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Once 1.7 EH/s of new miners were installed at five new Georgia sites, CleanSpark exceeded its mid-year objective. Once finished, these sites should generate an extra two EH/s. A key indicator of mining activities is hash rate, the total aggregate computing capacity employed to mine transactions on the Bitcoin network.

Aim Ahead and Industry Position

Trailing Marathon Digital and Core Scientific at 29.9 EH/s and 20.4 EH/s respectively, CleanSpark is now the third Bitcoin miner to break the 20 EH/s milestone. Hashrate Index data shows. Emphasizing a targeted approach on raising Bitcoin mining hash rate and related income, Bradford said the company is currently aiming to attain a hash rate of 50 EH/s.

To find other income sources, some big Bitcoin miners—including Core Scientific, TeraWulf, Hut 8 Corp, and Northern Data AG—have entered the artificial intelligence and cloud computing industry recently. CleanSpark also announced a $155 million merger with GRIID Infrastructure on June 27, acquiring all issued and outstanding common shares of GRIID and absorbing its obligations along with an extra 20 megawatts of electricity under the arrangement.

Google Finance data shows that CleanSpark’s (CLSK) shares dropped over 5.5% to $16.93 on July 2 despite rising Bitcoin output and the hash rate milestone. But CLSK is still up 55.6% in 2024 and 247.6% for the last 12 months.

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