Bitcoin Miner Hut 8 Stopped Selling BTC in Anticipation of the Halving

Updated: 11 October 2023

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Bitcoin mining company Hut 8 released a new update this Tuesday, October 10, unveiling details of its BTC production for the past month.

However, with the details of BTC production, the company also decided to halt BTC sales in anticipation of the halving. The report said that Hut 8 managed to mine 111 BTC in September 2023 and claimed it did not sell a single satoshi during this period.

Hut 8 is Bullish on BTC Price in the Long Term

Bitcoin halving — the event after every 210,000 blocks are created and cut the mining rewards in half — is commonly believed to be the main force behind every significant bull run.

While halvings are generally bad for miners, since the amount of BTC gets halved, the surge in the coin’s following price usually makes up for the reward drop.

Hut 8 said it is bullish on the coin’s long-term price and currently doesn’t need to sell any newly mined BTC to finance operations.

Erin Dermer, Hut 8’s senior VP of communications states:

We are fortunate that, unlike some single-threaded miners, we do not need to sell our Bitcoin production to finance operations.

Miners Anticipate a Post-Halving Bull Run

With halving on the horizon, most BTC mining firms are likely to ramp up production as much as possible and reduce their BTC sales in anticipation of the price increase.

Historically, the coin’s price tends to grow as the halving approaches, only to see a sharp drop after it happens. Typically, six to twelve months after that, Bitcoin experiences a bull run that takes it to a new all-time high.

At least, this is how things have worked out in the past. While it is important to note that this is not a certainty, many seem to believe the situation will play out similarly moving forward.

After the halving, Hut may experience revenue challenges, as it will still cut the miners’ rates in half. However, it, as well as other companies, are bullish on Bitcoin’s long-term price.

“We believe that post-halving, some miners will face headwinds as efficiency becomes paramount, the difficulty increases, and block rewards are reduced by half. Hut 8 has long been a HODLer of Bitcoin, as we are bullish that it will increase in value over time,” Dermer said.

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