Bitcoin Miners Defy Market Downturn, Refuse to Sell

Bitcoin miners are unexpectedly resilient in the face of a depressed market, where $BTC is trading at around 17% below its average mining cost. Despite higher production costs and a 3X decline in daily miner revenue since last October from $60M to $20M, according to Coinglass data, miners aren't selling aggressively.

Citing Bitfinex analysts, the Puell Multiple metric shows revenue is below its yearly average at around 0.7, while the Miners' Position Index at -1.2 indicates subdued outflows. This suggests that despite weaker revenue, miner selling pressure remains low.

The AI pivot by some public miners has been largely responsible for the 17% drop in hash rate as they redirect computational power to AI data centers. This shift is reflected in the performance of Bitcoin miner stocks, which have recorded relatively higher stock price gains compared to $BTC. Notably, CoinShares' Bitcoin Mining ETF (WGMI) has posted a 20% profit on a year-to-date basis, while Bitcoin [$BTC] has lost nearly 30%. The divergence is due to most public $BTC miners now being considered AI players, not just crypto miners.