Bitcoin Plunge Triggers Miner Sell-Off: Core Scientific Dumps 79% of Holdings

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The cryptocurrency market has entered a turbulent phase as rising inflation and aggressive monetary tightening by central banks take a toll on high-risk assets. Bitcoin, the largest digital asset by market capitalization, has not been spared—its price has dropped over 50% since the beginning of the year, sinking below the $20,000 mark.

This steep decline has triggered a wave of forced selling among miners, who are increasingly liquidating their Bitcoin reserves to cover operational costs and debt obligations. Among them, Core Scientific, North America’s largest digital asset mining company, made headlines in June by selling 79% of its Bitcoin holdings.

The company offloaded 7,202 BTC at an average price of approximately $23,000 per coin, generating around $167 million in proceeds. After the sale, Core Scientific retained just 1,959 BTC on its balance sheet as of the end of June.

Scaling the Depths of Crypto Mining

Founded in 2017, Core Scientific operates one of the most extensive mining infrastructures in North America, powered by a fleet of more than 180,000 ASIC (Application-Specific Integrated Circuit) servers. It also provides mining hosting services, positioning itself as both a major miner and a key infrastructure player in the industry.

In June alone, its self-operated mining rigs produced roughly 1,100 BTC—about 37 BTC per day—highlighting the scale of its operations despite ongoing market headwinds.

👉 Discover how leading miners are adapting to volatile markets and securing long-term sustainability.

Economic Pressures Force Strategic Retreat

Mike Levitt, CEO of Core Scientific, acknowledged the mounting pressure facing the sector:

“With capital markets under stress, interest rates rising, and the economy grappling with historic inflation, our industry is under significant strain.”

In response, the company plans to continue selling portions of its Bitcoin inventory to fund operations, support growth initiatives, repay debt, and maintain liquidity. This strategy reflects a broader trend across the mining industry, where many firms are prioritizing survival over long-term hodling.

A Sector Under Siege: Miners Turn to Reserves

As Bitcoin's price tumbles, energy costs climb, and network difficulty increases due to heightened competition, more miners are dipping into their reserves. According to researchers at MacroHive, outflows of Bitcoin from miner wallets to exchanges have risen steadily since early June.

Arcane Research further revealed that several publicly traded Bitcoin mining companies sold more than 100% of their May production—indicating they were selling not only newly mined coins but also existing holdings.

JPMorgan analysts warn this trend could persist. They suggest that miners may need to keep selling digital assets to manage costs or reduce leverage. These sustained outflows likely contributed to downward price pressure in May and June and could continue weighing on Bitcoin’s performance through Q3 2025.

Frequently Asked Questions (FAQ)

Q: Why are Bitcoin miners selling their holdings?
A: Miners are selling due to a combination of falling Bitcoin prices, rising energy costs, and increased operational expenses. Many need liquidity to cover debts and ongoing costs, especially when mining profitability drops below break-even levels.

Q: How does miner selling affect Bitcoin’s price?
A: When miners sell large volumes of Bitcoin—especially during bear markets—it increases supply on exchanges without corresponding demand, which can drive prices lower. Sustained selling pressure from this group often amplifies market downturns.

Q: Is Core Scientific shutting down operations?
A: No. While Core Scientific sold most of its Bitcoin reserves, it continues active mining operations. The sale was a strategic financial move to ensure solvency and operational continuity amid challenging macroeconomic conditions.

Q: What is the break-even cost for Bitcoin mining today?
A: Estimates vary by region and efficiency, but many miners face break-even costs between $18,000 and $25,000 per BTC. With prices hovering near $20,000, less efficient operators are already operating at a loss.

Q: Could this sell-off signal a market bottom?
A: Historically, intense miner capitulation has preceded market bottoms. Once weaker players exit and selling pressure subsides, prices often stabilize before beginning a recovery cycle. However, timing remains uncertain and depends on broader macro factors.

Industry-Wide Challenges and Strategic Shifts

The current environment marks one of the toughest periods for Bitcoin miners since the 2018 crypto winter. In addition to price volatility, three key challenges are compounding pressure:

  1. Rising Energy Costs: Electricity remains the largest expense for miners. With global energy prices elevated, profit margins have evaporated for many.
  2. Higher Interest Rates: Tightening monetary policy has reduced access to cheap capital, making it harder for miners to refinance debt or invest in new equipment.
  3. Network Difficulty: Despite some miners shutting down operations, network hash rate remains high, keeping mining rewards competitive and reducing individual returns.

These forces are reshaping the industry landscape. Companies are exploring solutions such as relocating to regions with cheaper power, upgrading to more efficient hardware, and entering into hedging agreements to lock in future revenues.

👉 Explore how next-gen mining strategies are redefining resilience in bear markets.

Looking Ahead: Survival and Innovation

While the near-term outlook remains uncertain, experts believe this downturn will ultimately strengthen the Bitcoin network by weeding out inefficient players and encouraging innovation in energy sourcing and operational efficiency.

For investors and observers alike, monitoring miner behavior—especially reserve levels and exchange outflows—offers valuable insights into market sentiment and potential turning points.

As history shows, every crypto winter eventually gives way to spring. The current sell-off may be painful, but it could also lay the groundwork for a more sustainable and mature mining ecosystem.

👉 Stay ahead of market cycles with real-time data and strategic insights from OKX.

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