Bitcoin Miners' Balance Slides as FTX Collapse Weighs on Crypto

Data tracked by Glassnode shows, the number of bitcoin held by miner wallets has dropped to a 10-month low.

AccessTimeIconNov 14, 2022 at 8:38 a.m. UTC
Updated Nov 14, 2022 at 8:49 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC) miners or entities generating the cryptocurrency seem to be running down their coin stash amid the FTX-induced market panic.

In the past seven days, the balance held in miner wallets has declined by 9,402 BTC to a ten-month low of 1.826 million BTC ($30.6 billion), according to data tracked by blockchain analytics firm Glassnode.

The miner net position change, or the 30-day change of BTC supply held in miner addresses, slipped to -10,972 BTC on Thursday, the lowest since early January.

Bitcoin miners solve complex algorithmic problems to mine blocks and verify transactions in return for rewards paid in BTC. In other words, the miner profitability is heavily dependent on the cryptocurrency's price. Therefore, miners tend to run down their inventory in a bleeding market to stay afloat.

Bitcoin fell by 22% in the seven days to Nov. 13, its biggest decline since June, as the collapse of Sam Bankman Fried's FTX exchange dented investor confidence and triggered contagion fears.

miner net position change.png

The sell-off could continue in the days ahead, analysts told CoinDesk. That would worsen the situation for miners, who have been facing high operational costs.

"Bitcoin mining companies have struggled this year, with the fall in the price of the largest cryptocurrency and rising energy prices (and operating costs) leading to a decline in revenue. As a result of this, mining firms have been heavily selling their underlying holdings, leading to significant net outflows over the last six months," data provider CryptoCompare said in the October review.

Charles Edwards, CEO of asset manager Capriole, recently voiced a similar opinion on Twitter, saying, "bitcoin's electrical cost has just been breached for the 2nd time only in 5 years. The electrical bill for the average miner is now greater than the income earnt."

"Many Bitcoin miners are now turning their rigs off," Edwards added.

Mining firms have been heavily selling their underlying holdings over the past six months.
Mining firms have been heavily selling their underlying holdings over the past six months.

According to Blockware Solutions, a continued BTC price slide toward $15,000, would not necessarily see miners immediately turn of their machines.

"Many miners have PPAs [power purchase agreements] and hosting contracts that require them to consume energy or potentially pay an additional fee. Many miners will likely continue mining at a loss in the short term until either the price of BTC goes back up, or they exit their operation altogether," Blockware's latest weekly newsletter said.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.