Bitcoin Mining Giant Abandons Full-Hold Strategy, Unloads $40M In Crypto

By: cryptonews|2025/05/07 10:15:02
0
Share
copy
Riot Platforms sold 475 Bitcoin worth $38.8 million in December as profit margins narrow throughout the mining sector. The Colorado firm, the second-largest publicly traded Bitcoin miner by market capitalization, sold the cryptocurrency at an average price of $81,731 per coin, Monday’s operations update disclosed. Mining Profits Narrow Following Bitcoin Halving Event The sell-off follows a year since Bitcoin’s fourth halving event, where mining rewards were halved. Miners now get 3.125 Bitcoin per block, down from 6.25, in a pre-programmed cut that happens every four years or so. The self-adjusting cut has tightened margins for mining operations that depend on a continuous stream of new tokens to pay for increasing expenses. Riot Platforms mined 463 Bitcoin last April, decreasing by 13% from the prior month though it sustained the same level of computing power. The firm tapped the remaining 12 Bitcoin from reserves for finishing the sale. Source: Riot Platforms CEO Defends Strategy As ‘Reducing’ Shareholder Dilution Throughout April, Riot said it made the strategic choice to sell its monthly production of bitcoin to finance continued growth and operations, Riot CEO Jason Les stated in the update. Les said selling Bitcoin lessens the company’s need to raise money by issuing new shares, which would dilute current shareholders’ ownership stakes. Riot Announces April 2025 Production and Operations Updates. “Riot mined 463 bitcoin in April as the network experienced two successive difficulty adjustments during the month,” said @JasonLes_, CEO of Riot. “April was a significant month for Riot as we closed on the acquisition... pic.twitter.com/0cSznh5fBM — Riot Platforms, Inc. (@RiotPlatforms) May 5, 2025 Even with the sell-off, Riot retains 19,211 Bitcoin on its balance sheet. That stash is valued at about $1.8 billion at current prices, demonstrating the company has substantial cryptocurrency holdings even as it sells some to cash out. Mining Difficulty Increases As Competition Heats Up The problems that Riot is experiencing are reflective of wider trends in Bitcoin mining. The difficulty level of the network, a measure of how difficult it is to mine new Bitcoin, was nearly a whopping 120 trillion hashes as of May 4. That’s a 35% increase from last year, according to CoinWarz data. As more miners vie for the same diminished payouts, each operation must increase electricity and equipment expenses in order to receive Bitcoin. This competition has constricted margins throughout the industry, compelling businesses to reassess their cash management practices. Source: Statista While Bitcoin has gained 45% in value over the past year and most recently traded over $95,000, it remains below its January peak of $109,000. This price retreat has further pressured mining companies already dealing with higher costs and lower production. Riot’s move underscores the tightrope Bitcoin miners walk: they have to balance short-term cash requirements with speculation on the future price tag of the most popular cryptocurrency. For the time being, at least one large player is opting for cash upfront over future potential. Featured image from Riot Platforms, chart from TradingView

You may also like

How to Earn Free USDT in 2026: No High Volume Required (WEEX Poker Party Guide)

Is Joker Crypto legit in 2026 or just another memecoin? Can You Really Earn Passive Income with Joker Crypto in 2026? Learn how Joker staking rewards work, how to earn NFT bonuses, expected APY ranges, gas-fee rebates, and how to avoid crypto scams before joining.

How to Get Free USDT Welcome Bonus in 2026: Earn Up to 700 USDT on WEEX

Legit Free Welcome Bonus 2026: Learn how to earn up to 700 USDT on WEEX with Auto Earn Boost Fest. Increase your balance, activate Auto Earn, and qualify automatically.

AI Agent Payments Just Got Real: Utexo × x402 Brings 50ms USDT Transactions to Internet Scale

Utexo integrates USDT into the x402 protocol, enabling 50ms instant payments embedded natively in HTTP requests. Explore how this breakthrough is rewriting the rules for AI agent payments, API monetization, and the machine-to-machine economy.

DWF Deep Report: AI in DeFi Outperforms Humans in Yield Optimization, but Complex Trades Still Lag Behind by 5 Times

Among agents, model selection and risk management have the greatest impact on trading performance.

What Separates Smart Money from the Crowd in Crypto? Insights from Freedom of Money

Most crypto traders lose money not because of bad luck, but because they misunderstand how the market really works. From Freedom of Money to the rise and fall of Sam Bankman-Fried, they highlight a key divide in crypto: those who build the market and those who chase it. This reading guide explores essential books that reveal how narrative, regulation, capital, and psychology shape long-term success in the crypto industry.

The Risk Management Core Team has just been ousted, and Aave is now facing a $200 million default.

rsETH attack is just the tip of the iceberg, Aave is an approved insolvency

Popular coins

Latest Crypto News

Read more