The crypto‑mining industry is at a critical juncture. A recent disclosure from Marathon Digital Holdings (ticker: MARA) reveals a pivotal shift: the company intends to begin selling some of the newly mined Bitcoin (BTC) rather than holding it all for speculative upside. This change may mark the beginning of a broader trend among miners — one with potentially serious implications for Bitcoin’s supply dynamics and price trajectory.
1. Marathon’s Strategic Pivot
Marathon’s Q3 2025 report showed that by September 30 it held about 52,850 BTC, with an in‑house electricity cost of roughly $0.04/kWh and an all‑in energy cost per Bitcoin mined around $39,235. Historically, Marathon and other miners have tended to retain their mined BTC in hopes of capital appreciation. But the new disclosure says: the company will begin selling “a portion” of the freshly mined coins “to fund operations.”
Why the shift? The article highlights three key pressures:
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Flat or weak transaction‑fee revenue (only ~0.9 % of mining revenue in Q3).
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Rising network difficulty and hash‑rate which reduces revenue per hash (hashprice).
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Large capital expenditures (CapEx) and financing needs: Marathon spent ~$243 M on assets and equipment, $216 M in supplier prepayments, and $36 M on wind‑assets — all in the context of $1.6 B in raised capital.
Taken together, they create the classic “squeeze on margins” scenario for miners: revenues falling, costs rising, and cash flow tightening. Marathon’s choice to sell BTC rather than maintain a strict “hold” strategy signals that even well‑funded miners are feeling the heat.
2. Industry Implications: A Supply Risk Emerges
Marathon’s move may not be isolated. The article notes data from CryptoQuant showing that Bitcoin transfers from miner wallets to exchanges increased significantly from mid‑October into early November. About 51,000 BTC moved to Binance since October 9.
Simultaneously, crypto ETPs (exchange‑traded products) are seeing large outflows: CoinShares reports over $360 M in net redemptions, of which ~$946 M came from Bitcoin‑related products (~9,000 BTC) — roughly equivalent to three days’ post‑halving issuance.
If miners increase sales while institutional demand weakens, the supply/demand balance could shift, potentially adding downward pressure on Bitcoin’s price. The article warns of a feedback loop: falling margins → more selling by miners → increased supply → lower price → further margin compression.
3. Differentiation Among Miners
Not all mining companies face the same pressure. The article compares several miners:
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Riot Platforms reported a record revenue (~$180.2 M) and strong profitability, and is adding 112 MW of new data‑centre capacity. So far, it appears to have the liquidity and financial flexibility to not need to sell mined BTC imminently.
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CleanSpark, while facing cost pressures, reported an average cost per Bitcoin between ~$30,000 and $35,000, sold about 590 BTC in October for ~$64.9 M, yet still increased its holdings to 13,033 BTC — showing active treasury management rather than distressed selling.
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Hut 8 Mining reported ~$83.5 M revenue and positive net income in Q3, again indicating some firms are better positioned.
The differences principally come from three variables: electricity cost, access to capital/financing, and existing Bitcoin inventory. Lower power costs and strong financing allow miners to hold rather than sell under pressure.
4. The Bigger Picture & What to Watch
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Supply side ticking clock: While daily new issuance of Bitcoin is limited (~450 BTC/day after halving) and even if all miners sold their new issuance the supply increase would be bounded in absolute terms. Yet the risk lies in large holders (e.g., Marathon’s 52,850 BTC) choosing to offload chunks of their existing treasury if needed.
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Margin recovery is key: A rebound in hashprice (revenue per unit hash) or a surge in transaction‑fees could ease pressure on miners and reduce urgent selling. The article suggests if those improve, miners can hold firm rather than liquidate.
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Feedback risk: If selling from miners and institutional outflows coincide, the downward spiral described earlier becomes more likely — supply increases, price falls, margins shrink, more selling, etc.
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Watch miners’ wallets: On‑chain monitoring of transfers from miner wallets to exchanges offers an early warning signal of selling pressure. Also observe mining companies’ disclosures around treasury policy.
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Differentiate miner strategies: Investors should not treat all miners equally — those with low cost structure and strong financing (e.g., Riot, CleanSpark) are in a stronger position than those with higher costs and squeezed cash flows.
5. Conclusion
The strategic shift by Marathon — from holding mined Bitcoin to actively selling part of it — is a clear warning sign. It demonstrates that even large, established miners are not immune to margin squeeze and liquidity pressure. If this pattern becomes more widespread, it may add meaningful supply pressure to the Bitcoin market just as some institutional demand is softening.
For market participants, the key questions are: how many miners will be forced into selling, what volume might that entail, and whether renewed demand or revenue tailwinds can prevent a vicious cycle. In short, this development may mark a subtle but important inflection point in the mining‑supply side of the Bitcoin ecosystem.
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