Bitcoin Miners Sell 40% of March Coins Amid Economic Uncertainty

Publicly listed Bitcoin miners sold over 40% of the collective coins mined in March, marking the largest monthly BTC liquidation for mining firms since October 2024. This trend reverses the post-halving strategy of accumulating Bitcoin for corporate treasuries, according to a report that analyzed data from 15 publicly traded mining companies.

The surge in liquidations coincides with widespread macroeconomic uncertainty in financial markets and the business sector. This suggests that companies are selling their BTC to mitigate shortfalls caused by the current economic climate. The increased selling pressure from mining firms offloading BTC to cover operational expenses contributes to the volatility in the cryptocurrency market.

Bitcoin experienced a 2.3% loss in March, following a 17.39% correction the previous month. This volatility can be attributed to the selling pressure from mining firms, which are under significant financial strain due to high costs, operational hurdles, and fierce competitiveness within the industry.

The effects of a trade war on businesses, financial markets, and global supply chains have exacerbated these challenges. Producing all hardware components used for mining BTC in the United States is not feasible, according to the chief marketing officer at a BTC mining service provider. Tariff policies have made components and business-to-business services more expensive, eroding miner profitability.

Threats of taxing energy imports have added to the uncertainty facing some US-based mining firms, as energy costs are a critical input in determining profit margins for miners. Higher costs from trade tensions may benefit mining firms outside the US, as hardware manufacturers and resellers offload equipment originally meant for US customers to other jurisdictions at lower prices.

Importing machines to the US will now cost at least 24% more compared to tariff-free countries. This makes mining Bitcoin in the US economically unfeasible if 24% tariffs are levied on mining components. As a result, US firms may gradually lose market share due to the tariffs.