TLDR
- MARA Holdings sent 1,318 BTC worth $87 million to trading firms and exchanges over 10 hours Thursday
- Two Prime received 663 BTC valued at $42.6 million while BitGo addresses got $20.4 million in transfers
- Stock plummeted 18.72% to $6.73 as bitcoin dropped to $60,000, below the $87,000 mining cost
- Mining sector revenue fell to $32.62 million daily from $41.5 million two weeks ago
- IREN dropped 11.46% and CleanSpark fell 19.13% as mining stocks sold off sharply
MARA Holdings sent 1,318 BTC valued at $87 million to various counterparties Thursday. The transfers occurred as bitcoin plunged to $60,000 in a week of brutal crypto market losses.
The company moved 653.773 BTC worth $42 million to Two Prime according to Arkham onchain data. Another 8.999 BTC followed to the same digital asset manager minutes later.
BitGo-linked addresses received 200 BTC and 99.999 BTC in separate transactions totaling $20.4 million. MARA also sent 305 BTC to a new wallet worth approximately $20.72 million.
Marathon Digital Holdings, Inc., MARA
Traders are scrutinizing the timing of these movements. The transfers came during extreme market volatility following a liquidation-driven selloff that hammered crypto prices.
Miner transfers can serve multiple purposes including treasury management or collateral posting. However, investors often interpret large movements as potential selling pressure when markets are fragile.
Financial Pressure Mounts on Miners
The Two Prime transfer is particularly noteworthy given the firm’s role in credit and trading. MARA could be using the bitcoin as collateral for financing rather than preparing for spot sales.
Still, the broader context is troubling for the mining sector. Bitcoin has collapsed nearly 50% from its $126,000 peak last year.
The current price sits roughly 20% below the estimated $87,000 cost to mine one bitcoin. This gap puts enormous financial strain on mining operations across the industry.
When bitcoin trades under production cost, history suggests bear market conditions. Miners face difficult choices about selling inventory versus waiting for prices to recover.
Bitcoin traded at $66,417 as of 1:00 a.m. ET Friday after falling 5.8% in 24 hours. Thursday’s brief drop to $60,000 marked a weekly low that shook investor confidence.
Sector Faces Revenue Decline
MARA stock crashed 18.72% Thursday closing at $6.73. The stock is down 34.72% for the month as the crypto winter deepens.
The selling pressure extended across mining stocks. IREN shares dropped 11.46% Thursday while CleanSpark tumbled 19.13%.
Bitcoin miner daily revenue slipped to $32.62 million as of Wednesday based on seven-day moving averages. That represents a sharp decline from $41.5 million just 14 days earlier.
The revenue drop highlights the profitability crisis facing miners. Companies sell bitcoin to fund electricity bills and operating costs, making price drops immediately painful.
Traders Watch for Capitulation
Market participants are monitoring onchain activity for signs of miner capitulation. Forced selling from major operators could accelerate bitcoin’s decline in current conditions.
The economics have turned brutal for the industry. With prices below mining costs, companies must tap reserves or find alternative funding sources.
MARA’s wallet activity demonstrates the pressure building on miners. The company distributed nearly $87 million in bitcoin across trading desks and custody solutions during Thursday’s selloff.
Onchain data shows these movements unfolded over approximately 10 hours as bitcoin tested support levels. The transfers included both identified counterparties and unknown addresses.
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