Coinbase Says Miners’ Sales of Newly Minted Bitcoins Don’t Add Significant Market Pressure

The financing environment for the mining industry has “shifted materially” since late last year, the company says. Mining margins compress across the board, forcing more miners to become net sellers, the note says. Raising capital in the public markets has become very difficult for miners, the firm says. In times of market upheaval and a falling bitcoin price, margins compress, it's hard for miners to sell, it says, and raising capital in public markets is difficult for mining firms, it adds. The price drop and the resulting loss of profitability has led to a drop in margins, the report says. It's unclear how long the price drop will continue to drag on the mining market, the bitcoin mining firm says, but it says. Source