Bitcoin Miners Accelerate Sell-Off Amid Mounting Revenue Pressures
Publicly traded Bitcoin mining companies sold 115% of their April production, marking the most aggressive monthly liquidation since late 2022. This intensified sell-off occurred despite Bitcoin reaching a new all-time high of nearly $109,500 in May, underscoring the financial strain miners face amid declining profitability metrics.
The surge in Bitcoin's price was insufficient to offset the challenges miners encountered. Hashprice—a key indicator measuring miner revenue per unit of computing power—remained under significant pressure. Throughout April, hashprice fluctuated between $40.71 and $49.08 per petahash per second , averaging $45.46. This level is perilously close to the break-even point for many operators, particularly those utilizing older hardware models like the Antminer S19 XP and S19 Pro.
Compounding the issue, Bitcoin's network difficulty experienced an 8.3% increase over two consecutive adjustments in April, reaching an average of 120.98 trillion. This escalation in difficulty, coupled with a modest 1.5% rise in Bitcoin's price, further compressed miners' margins. Additionally, transaction fees, which constitute a portion of miners' income, remained subdued. Although there was an 8.7% month-over-month increase in transaction fees, they still accounted for only 1.34% of total block rewards, offering limited relief.
ADVERTISEMENT
The financial pressures have prompted miners to liquidate more Bitcoin than they produce. This trend reflects the urgent need to cover operational costs, including energy expenses and equipment upgrades. The situation is exacerbated by external factors such as rising energy prices and geopolitical uncertainties, including trade tensions that threaten to increase operational costs further.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
3 hours ago
- Arabian Post
Ukraine Eyes Crypto Inclusion in National Reserves
Kyiv's parliament has introduced draft Bill 13356, empowering the National Bank of Ukraine to incorporate virtual assets—primarily Bitcoin—into its official gold and foreign-exchange reserves. The legislation would not compel the central bank to adopt such assets, but merely grant it the legal framework to do so. Lead author Yaroslav Zheleznyak, first deputy chair of the Rada's Finance Committee, highlighted that the bank would retain full discretion over timing, volume, and methodology of any crypto acquisitions. He described the measure as a pivotal move to 'integrate Ukraine into global financial innovations' and bolster macroeconomic resilience while catalysing the digital economy. Ukraine currently holds approximately 46,351 BTC—valued at over $5 billion—though these holdings originate from asset seizures, donations, and fundraising during wartime, and remain under civil-servant control rather than central-bank custody. If passed, the law would permit the bank to transition some of those coins into officially recognised reserves. ADVERTISEMENT The proposal mirrors a broader trend: several nations are charting similar initiatives. The United States launched a Strategic Bitcoin Reserve under an executive order issued on 6 March by former President Trump, consolidating government‑owned cryptos into a national asset. Pakistan, Brazil and the Czech Republic are exploring mechanisms to incorporate digital assets into sovereign financial systems. El Salvador, which adopted Bitcoin as legal tender in 2021, holds over 6,000 BTC, while Bhutan maintains mining‑powered reserves worth around $750 million. Yet the move is not without detractors. Critics emphasise Bitcoin's volatility, liquidity constraints and concentration within corporate entities like MicroStrategy, which undermine its suitability as a stable reserve asset. The Swiss National Bank's governor, Martin Schlegel, reaffirmed this stance on 25 April in Bern, warning that crypto lacks the stability and liquidity required for central‑bank reserve portfolios. ECB President Christine Lagarde has echoed similar concerns, stating that digital assets do not meet the criteria for eurozone reserve holdings. Proponents argue that strategic inclusion could buffer Ukraine against inflation and currency devaluation, offering rapid, secure transferability unmatched by physical assets. Zheleznyak's Telegram statement emphasised that implementation would be fully at the central bank's professional discretion. Operationalising the proposal will require establishing robust legal and procedural frameworks: anti‑money‑laundering protocols, cybersecurity safeguards, digital custody infrastructure, and accounting mechanisms. Banking analysts suggest that careful integration and risk management will be essential to balance innovation with financial stability. Ukraine's draft arrives amid growing global debate on digital money. Central bank digital currencies are being piloted worldwide, such as Turkey's digital lira, China's e‑renminbi, and Nigeria's e‑Naira. Meanwhile, debates continue over whether public‑sector balance sheets should venture into decentralised finance or maintain traditional gold‑forex portfolios. As parliamentarians prepare to debate Bill 13356, attention will turn to amendments that might specify asset types, risk parameters, and accounting standards—or narrow discretionary power for the central bank. The legislation must also align with IMF frameworks and comply with anti‑money‑laundering regulations.
Arabian Post
5 hours ago
- Arabian Post
Trump-Backed Truth Social Launches Spot Bitcoin ETF Bid
Trump Media & Technology Group, owner of the Truth Social platform, has submitted a Form S‑1 registration to the U.S. Securities and Exchange Commission for its proposed Truth Social Bitcoin ETF, aiming to list on NYSE Arca. The application states the fund will hold Bitcoin directly, with serving as custodian, prime execution agent and liquidity provider, and Yorkville America Digital listed as sponsor. NYSE Arca has separately filed a Form 19b‑4 to list the fund should it receive regulatory approval. The filing highlights an unprecedented disclosure linking the fund's prospects to President Trump's crypto-related initiatives. For the first time in a crypto-ETF filing, the risk section cites creation of an SEC crypto task force in January and the March executive order establishing a Strategic Bitcoin Reserve. It warns that the impact of these policies on the sponsor, the fund, TMTG, or affiliates 'is not possible to fully predict'. Bloomberg's Eric Balchunas noted this is likely 'the first time ever the advisor is in the risk section'. If approved, the ETF would become part of a growing cohort of spot Bitcoin funds currently active in the U.S., including BlackRock's iShares Bitcoin Trust, which has amassed over US $70 billion in assets, BlackRock having initially launched the product in January 2024. Other major asset managers—Fidelity, Bitwise—also offer similar instruments, making the market highly competitive. ADVERTISEMENT TMTG's proposed fund is closely tied to the broader ambitions of Trump's crypto policy platform. The earlier executive order in March 2025 mandated creation of a Strategic Bitcoin Reserve using government-forfeited assets, effectively integrating Bitcoin into sovereign reserves. The order also created a U.S. Digital Asset Stockpile, requiring federal agencies to centralise digital asset holdings and obliging the Secretaries of Treasury and Commerce to evaluate further acquisitions at no cost to taxpayers. The regulatory backdrop has shifted markedly. January's executive directive established a Presidential Working Group on Digital Asset Markets and directed the SEC to create a crypto task force. Gary Gensler resigned as SEC chair on the eve of Trump's inauguration and was succeeded by Paul Atkins, a noted crypto advocate. The SEC has since dropped several previous enforcement cases and eased accounting rules, paving the way for more crypto-product filings. Trump Media's broader strategy involves securing a substantial Bitcoin treasury. SEC filings indicate its Form S‑3 shelf registration allows issuance of up to 85 million shares tied to its $2.3 billion private placement, earmarked to purchase roughly 23,000 Bitcoin—potentially placing the company among the top public corporate holders. Custody of these assets is expected to be shared between Anchorage Digital and Yorkville America Digital's dual role—as sponsor of the ETF and partner to TMTG—has raised questions of conflicts of interest. The risk disclosure notes Yorkville affiliates are also involved in an investing platform tied to Trump's 'America First' agenda, and have made up to $2.5 billion in equity commitments to TMTG. The same affiliate acted as co-placement agent for the $2.44 billion private placement. Financial markets have responded with mixed signals. While Bitcoin briefly surpassed US $111,000 following Trump's return to the executive and policy shifts, it has since retreated to the US $105,000–$101,000 range. TMTG's own stock dropped around 8 per cent following public disputes between Trump and Elon Musk, and remains down roughly 56 per cent over the past 12 months. ADVERTISEMENT Analysts say the fund faces significant challenges. Despite its high-profile branding and alignment with Trump's policy agenda, it competes against established firms with deep institutional credibility. ETF expert Dave Nadig remarked that long-term asset gathering for this fund is 'extraordinarily unlikely'. CoinCorner CEO Danny Scott expressed unease about Trump's use of political influence in personal financial ventures. The ETF's structure also contains potentially problematic clauses. Cointelegraph reports that the S‑1 includes exclusive arrangements granting sole custodian and liquidity provision roles, and provisions that allow the sponsor to take positions ahead of the Trust—raising transparency concerns. Still, proponents contend the fund could redefine retail and ideological investor access. Backers assert its America‑First branding might appeal to conservative retail investors seeking regulated Bitcoin exposure. reach—serving over 140 million users and holding approximately US $30 billion in assets—could alleviate institutional concerns about custody risk. Approval hinges on SEC review of both S‑1 and 19b‑4 filings. With multiple spot Bitcoin ETFs already approved in the U.S., the regulatory framework exists—but TMTG's political ties, interlocking financial relationships and novel disclosures may trigger heightened scrutiny.
Arabian Post
13 hours ago
- Arabian Post
Metaplanet Pursues Bitcoin Supremacy with Aggressive Acquisitions
Japanese investment firm Metaplanet has scaled its way into the top ten corporate Bitcoin holders by acquiring a further 1,088 BTC for roughly $117.9 million, boosting its total holdings to 8,888 BTC and vaulting above Galaxy Digital and Block Inc. into ninth place worldwide. The firm purchased the coins at an average price of approximately $108,400 each, signalling deepening confidence in its treasury strategy underpinned by sustained market uncertainty. Metaplanet's pivot from hotel management to cryptocurrency began in 2024. Since then, its stock has surged dramatically, at times rising over 8,850 per cent in just two years, as the company pursued a bitcoin‑centric treasury model. That performance has mirrored similar moves in the sector, including U.S. software firm Strategy, whose model inspired Metaplanet's pivot. The firm announced a plan to raise approximately $5.3–5.4 billion via stock acquisition rights—the largest warrant issuance in Japan—to scale its bitcoin holdings to 210,000 BTC by the end of 2027. Metaplanet previously outlined a target of 21,000 BTC by the end of 2026, which has since been superseded by the more ambitious 100,000 BTC milestone for next year. ADVERTISEMENT Metaplanet's CEO, Simon Gerovich—a former Goldman Sachs derivatives trader—told investors that Bitcoin serves as a hedge against a weakening yen, prolonged negative interest rates, and rising concerns over sovereign debt, setting it apart from traditional safe‑haven assets such as government bonds. This reflects broader market trends: analysts at Bitwise and Bitfinex suggest high sovereign bond default probabilities and consolidation above cost basis support further upside for Bitcoin prices. Metaplanet's strategy, dubbed the '555 Million Plan' and following its earlier '21 Million Plan', channels nearly all funds raised into bitcoin purchases while maintaining flexibility to adjust funding based on market conditions and shareholder dilution safeguards. Its holdings, valued at close to $1 billion, now compare with those of Strategy, which boasts over 580,000 BTC, and ranks first among corporate holders. Investor reactions have been swift: Metaplanet's stock surged 15–22 per cent following the acquisition announcement and financing plan, underscoring strong market appetite for its bold strategy. Still, scepticism remains; industry analysts such as Standard Chartered caution that corporate reliance on Bitcoin may heighten balance‑sheet risk during market downturns and raise concerns about overvaluation in proxy‑stock structures. This aggressive accumulation mirrors industry-wide dynamics. Over 60 public companies now hold more than 3 per cent of Bitcoin's total supply, with estimates suggesting corporate demand may channel up to $330 billion into Bitcoin by 2029. In this environment, Metaplanet is positioning itself as Asia's counterpart to MicroStrategy, not only through fearless accumulation but also via initiatives like the forthcoming 'Bitcoin Hotel' in Tokyo and educational outreach through its Japanese licence of Bitcoin Magazine. Nevertheless, experts warn that this model carries heightened exposure to Bitcoin's extreme volatility, potential regulatory shifts, and macroeconomic undercurrents. While some view Metaplanet as a pioneer advancing institutional acceptance of crypto, others argue the strategy intensifies concentration risks within corporate treasuries.
