According to on-chain analytics firm Glassnode, Bitcoin miners are accumulating as the network hash rate continues to recover.
Miners BTC Balances Growing
According to Glassnode’s Sept. 20 Week on Chain report, miners BTC balances are growing. Along with wallets connected with miners stockpiling 14,000 BTC worth about $600 million over the last six and a half months.
Miners have kept a bigger percentage of their gains in the bull markets of 2020 and 2021. Rather than in prior market cycles. Miners typically sell BTC to fund their operating costs, like power and gear.
As the Bitcoin network’s hash rate improved this quarter, the pattern of miner accumulation persisted.
Hashing Power and Hash Rate
Glassnode claims that Bitcoin’s hashing power had dropped 51% to a local low of 90 Exahashes in late June. This is due to concerns about a mass Chinese miners migration.
According to a seven-day moving average, network hashing power has regained 52% to tag 137 Exahashes. Most mining operations have now moved and are up and running again, according to hash rate recovery.
On the other hand, the Bitcoin hash rate is now 34% lower than its all-time high of 184 Exahashes set in May.
Mining Companies Fallen
Despite growing mining reserves and a rebound in hash rates by the miners, shares in publicly traded mining companies have fallen as the broader financial markets retrace over fears that Chinese property behemoth Evergrande would default on its debts shortly.
Riot Blockchain’s stock has dropped 2.4% since the start of trading on Sept. 20, despite investing heavily in a new data centre in Texas and boosting its hashing capacity this year.
Marathon and Hive Blockchain are both down 1.5% since Monday morning. However, Hut 8 equities are down 5.4%. Therefore, rounding out the performance of each of the “Big Four” North American mining companies.
On the other hand, mining stocks have outperformed Bitcoin this week, with BTC down more than 10% to $42,730 at the time of writing, according to CoinGecko.