Bitcoin miners cash out $485M as BTC struggles to hold $112K; Red flag?
Bitcoin miners sold roughly $485 million worth of BTC during a 12-day stretch that ended on Aug. 23, prompting questions about whether the outflows are a warning sign or simply routine profit-taking.
Although Bitcoin briefly reclaimed the $112,000 level after slipping to a six-week low days earlier, miner wallets tracked by on-chain analytics showed steady withdrawals between Aug. 11 and Aug. 23 with little evidence of renewed accumulation since then. The last comparable multi-day run of consistent withdrawals — in excess of 500 BTC per day — occurred on Dec. 28, 2024.
Over the most recent sell-off, miners moved 4,207 BTC, roughly $485 million at the time, reducing miner balances to about 63,736 BTC (valued at more than $7.1 billion). That follows a prior accumulation period from April through July when miners added about 6,675 BTC to their reserves.
While miner outflows can stoke market fear and speculation, the volume is small compared with large corporate allocations from institutional buyers. Still, if miners face tighter cash flow, selling pressure could increase unless their profitability improves.
Data from mining industry trackers show that, over the past nine months, Bitcoin’s market price rose about 18% while miner profitability fell roughly 10%. Factors hitting margins include rising mining difficulty and weaker demand for on-chain transactions. The network continues to self-adjust to maintain an average block interval of 10 minutes, but margins remain a concern for some operators.
Hashprice indicators have softened recently — the index cited in the report moved from 59 PH/second a month earlier to about 54 PH/second — yet remain far stronger than levels seen earlier in the year. Even some older rigs, such as Bitmain’s S19 XP models, can remain profitable at electricity costs around $0.09 per kWh, according to equipment marketplace data.
Separately, a narrative has grown around mining firms diversifying into AI infrastructure. One reported deal involved TeraWulf raising funds in a transaction with Google to expand an AI data center campus slated to begin operations in the second half of 2026. Other mining firms are pursuing similar strategies: an Australian miner has accelerated GPU purchases and announced plans for large liquid-cooled GPU facilities, and another operator committed $30 million to expand GPU-powered operations in Quebec.
Despite miner selling and AI-related pivots, Bitcoin’s core fundamentals appear resilient. Network hashrate is approaching all-time highs — reported at roughly 960 million TH/second, up about 7% over the prior three months — which helps offset concerns that miner outflows alone will derail the market.
In short, there is no clear evidence miners are being forced to liquidate immediately. Continued selling could influence short-term price action, but inflows into corporate reserves and the strength of network fundamentals suggest the sector is not uniformly under acute stress.
This article is for general information purposes only and is not investment or legal advice. The views expressed are those of the author and do not necessarily reflect the views of the publisher.
