Miners Freeze Selling as $30B AI Pivot Takes Hold

Bitcoin miners have significantly reduced their selling of BTC after investing over $30 billion in artificial intelligence infrastructure, according to recent data. This substantial investment has led to a notable shift in miner behavior, as they now hold onto their coins rather than selling them.

In the past six months, public miners cut their realized hashrate by 15%, shutting down approximately 56 EH/s of computing power. Cango and IREN were among the leading companies that disconnected 29.5 EH/s and 21.9 EH/s respectively, accounting for 68% of the decline.

The Miner Position Index, which reflects miner behavior, has fallen to -1.2 in September, well below its yearly average. This indicates a significant change from August's brief spike to 2.8, which was associated with profit-taking as miners raised funds to cover the cost of new equipment and infrastructure commitments.

The industry's pivot towards AI infrastructure has created a cash gap for miners, leading them to sell BTC during previous market rallies. However, it appears that this selling pressure is now subsiding, resulting in a tighter stream of mined Bitcoin reaching trading venues.