Mining companies in need of liquidity in the third quarter are able to continue to exert downward pressure on the quotes of the first cryptocurrency. JPMorgan strategist Nikolaos Panigirtzoglou came to this conclusion.
According to the expert's calculations, the share of public mining companies accounts for about 20% of the hashrate. Many of them sold bitcoin to cover operating expenses and service loans. In view of the more limited access to capital, private miners also took similar steps, the strategist admitted.
“Unloading will continue in the third quarter if the profitability of production does not improve. This has already manifested itself in May and June. There is a risk that the process will continue,” he wrote.
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According to Panigirzoglu, the cost of mining 1 BTC from $18,000-$20,000 at the beginning of the year dropped to ~$15,000 in June due to the introduction of more energy-efficient equipment.Recall that Arcane Research analysts have calculated that the cash flow from bitcoin mining has decreased by 80% compared to the peak in November 2021, to levels two years ago. In particular, the outdated Antminer S9 is already operating at a loss.
According to experts, in May, public mining companies for the first time sold all the bitcoins mined in a month. Typically, the share of sold coins ranged from 25% to 40%.