Bitcoin miners sell 40% of March output amid rising costs

Publicly traded Bitcoin (CRYPTO:BTC) mining companies sold more than 40% of the coins they mined in March, marking the highest monthly sell-off since October 2024 and signaling a shift away from the recent trend of accumulating Bitcoin for treasury reserves.

According to TheMinerMag, which analysed data from 15 listed mining firms, these sales were driven by mounting economic pressures and uncertainty across financial markets and the business sector.

The increased liquidation comes as miners face elevated operational expenses, including higher energy and hardware costs, partly due to ongoing trade tariffs and supply chain disruptions.

“Producing all of the hardware components used for mining BTC in the United States is not possible,” explained Kristian Csepcsar, chief marketing officer at Braiins.

He added that US tariff policies are making components and business-to-business services more expensive, eroding miner profitability.

President Donald Trump’s tariff threats on energy imports have added to the uncertainty, as energy costs play a critical role in determining miners’ profit margins.

“Importing machines to the US will now cost at least 24% more compared to tariff-free countries like Finland,” Hashlabs CEO Jaran Mellerud commented.

He predicted that continued tariffs could make mining in the US economically unfeasible and lead to a gradual loss of market share for US-based firms.

The need to cover operating costs has led miners to offload more Bitcoin, contributing to selling pressure and increased volatility in the cryptocurrency’s price.

Bitcoin posted a 2.3% loss in March, following a 17.39% correction in the previous month, according to CoinGlass.

The mining sector’s challenges are compounded by fierce competition and the impact of global trade tensions, which have made it harder for firms to maintain profitability.

While some companies are exploring diversification and strategic mergers to weather the downturn, the overall environment remains difficult for miners navigating rising costs and uncertain regulatory conditions.

At the time of reporting, the Bitcoin (BTC) price was $83,992.58.