Bitcoin Miners Push BTC to the Limit as Selling Spikes and Costs Rise

Bitcoin miners are reportedly selling their BTC holdings at a record pace not seen since 2023, according to recent on-chain data and industry analysis. This trend, observed particularly in late August 2025, has raised concerns about increased selling pressure on the Bitcoin network. Key metrics such as the Miner Net Position Change showed a sharp decline into negative territory during that period, indicating significant liquidation activity by miners [1].

The increased selling is linked to a broader set of challenges facing the Bitcoin mining industry. The mining difficulty hit an all-time high of 136 trillion on September 6, 2025, according to Blockchain.com. Simultaneously, the mean hash rate dipped to 948.3 billion hashes per second, down from its peak of over 1 trillion on August 4 [1]. Higher difficulty levels and a rising hash rate have made mining more resource-intensive, increasing operational costs for miners and leading to heightened competition on the network.

Despite these challenges, the Mining Equilibrium Index (MEI), a key indicator of mining profitability relative to historical averages, remains in neutral to bullish territory at around 1.06 [2]. This suggests that while conditions are tough, the industry is not in a state of distress. Joao Wedson, founder of Alphractal, noted that the MEI is still well above the critical level of 0.5, where capitulation could become a risk for miners [2]. However, the index is notably below the peak levels of 2.5 seen during the 2017 and 2021 bull markets, reflecting a less optimal environment for mining operations.

On-chain metrics also highlight the strategic nature of current selling activity. The Puell Multiple, a measure of mining profitability based on block rewards and fees, remains in a healthy range, suggesting that miners are not under existential pressure to sell [1]. Additionally, the miner demand-supply balance is at 60%, indicating that network fees and issuance are sufficient to sustain operations without excessive selling [1]. However, demand has declined 6% from its all-time high, contributing to a more neutral to bullish outlook for miners.

Further evidence of the industry’s financial strain comes from Cango Inc., a major Bitcoin miner that reported Q2 2025 results showing strong mining performance but significant losses due to impairment charges and discontinued operations. The company mined 1,404.4 BTC during the quarter at an average all-in cost of $98,636 per coin [3]. Cango has also completed the divestiture of its China-based operations, shifting its focus to North American markets and transitioning its financial reporting to U.S. dollars to better reflect its operational landscape.

The broader implications of increased miner selling could extend beyond the immediate market. With the rise of dollar-pegged stablecoins and growing global adoption of digital assets, the actions of large-scale miners may influence the stability and liquidity of the Bitcoin network. The U.S. regulatory approval of stablecoins is expected to significantly expand the stablecoin market, potentially challenging traditional monetary systems and affecting the geopolitical dynamics between the U.S. and China [4]. As such, the behavior of Bitcoin miners is not just a domestic issue but a factor in the larger financial and technological landscape.

Source: [1] Bitcoin faces tougher mining conditions: Will BTC's selling trend reverse? (https://ambcrypto.com/bitcoin-faces-tougher-mining-conditions-will-btcs-selling-trend-reverse/) [2] Bitcoin Miners Still Under Pressure In 2025 — How Long... (https://www.mitrade.com/insights/news/live-news/article-3-1101755-20250907) [3] Cango mines 1,404 Bitcoin in Q2 and shifts to USD reporting... (https://finance.yahoo.com/news/cango-mines-1-404-bitcoin-133401977.html) [4] Wait for Stablecoins to Whip Up US-China Rivalry - Articles (https://www.advisorperspectives.com/articles/2025/09/08/wait-stablecoins-whip-up-us-china-rivalry)