State-owned mining companies sell coin stocks.
As the price of digital assets continues to decline, bitcoin miners are cutting back on loans and scaling back their operations.
Mining corporations raised billions of dollars in debt financing during the bull run at the end of 2021 to expand their operations.
Infrastructure spending fell sharply at the end of 2022.
Miners were obliged to liquidate their coin holdings and capital as a result of the collapse of the cryptocurrency market at the end of last year to pay off debt and fund operating costs.
According to Wolf Zhao, an analyst at consulting firm BlocksBridge, “miners are seeking to deleverage to prevent margin calls or an imminent liquidity crunch if bitcoin goes below a particular price level.”