Miners have paused the sale of reserves

The beginning of 2023 was marked by a general upturn for the cryptocurrency market and miners in particular. February was no exception, and the profitability of cryptocurrency mining increased significantly.

As a result, the financial situation of mining companies stabilized, which allowed them to reduce the volume of sales of reserves to almost zero to cover operating costs.

Recall that in 2022, during the onset of the crypto-winter, mining companies staged large-scale sales but even this did not help to avoid the deterioration of the financial situation and mass bankruptcies.

One of the main drivers was the launch of Ordinals, which allowed the creation of NFT on bitcoin. As a result, the block size of the first cryptocurrency increased significantly, reaching a maximum of 2.52 MB. It means a potential increase in miners’ transaction fees. The increase in the number of equipment in the network led to a 34% increase in the hash rate in 12 months.