Northern Data, Europe’s largest crypto-miner, in a report on Thursday, reveals that it plans to sell all its mining rewards daily to focus on cash generation in the bear market.
“Until further notice, we will also sell all mined coins on a day-to-day basis to focus on cash generation. We expect great opportunities to arise in this environment, and we are ready to take advantage where we see fit to our strategy,” said company chief Aroosh Thillainathan.
Meanwhile, the firm also reports selling its Bitcoin and Ethereum holdings between May and June above current price levels to improve its liquidity. The company, within the period, reportedly sold 48,616 ETH at an average price of $1,745 per ETH and 1,591 BTC at an average price of $30,403 per coin.
“Current global economic and political developments are not leaving crypto markets unaffected,” Thillainathan explains.
Northern Data reports that in June, it mined a total of 239 BTC, 19% less than it did in May, currently boasting a Bitcoin mining computing power of 3.5 EH/s. While on the other hand, it mined 4,331 ETH with over 223,000 GPUs.
It is worth noting that crypto miners have been amongst the worst hit by the recent market downturn. As previously reported by ZyCrypto, mining profitability has tanked by over 75%, even as energy costs rise. Consequently, most miners have been forced to sell their holdings to stay in business.
At the end of June, Glassnode’s data showed that the outflow of Bitcoin from miners to exchanges had tapped seven-month highs of about 9,476 BTC. More recent data further shows that miners have been selling an average of 3000 to 4000 BTC, with projections that this figure could go all the way to 8000 BTC soon.
It is worth noting that all of this adds to the selling pressure in the markets and could lead to more pain for crypto investors. While the Bitcoin price bottom remains unclear, miners’ selling has usually characterized the last phases of a crypto bear market.