Miners sell mined bitcoins, investing them to buy equipment

“The bear market for bitcoin and mining equipment is increasing the interest of a number of cryptosphere participants in investing.
In the mining industry, sales of mined bitcoins are currently at their highest level in five years, as Glassnode data shows. Given that the total bitcoin hash rate globally is holding near an all-time high, this situation is obviously related to the increased investment activity of miners in terms of purchasing mining equipment – which is the main motivator, even considering that the bitcoin price is currently in a bear market.
That said, the bear market in the mining equipment market has already sparked activity among those investors who are taking the opportunity to purchase miners at record discounts since March 2020.
Their actions are akin to what is happening in the bitcoin market: for example, MicroStrategy continues to implement a strategy where the proceeds from the placement of an additional $500 million of its own shares to invest in bitcoins, which at the current price of bitcoin means that in the near future the company will bring the amount of bitcoin ownership from 130 thousand to 150 thousand BTC.
It is noteworthy that MicroStrategy resorts to its own rather than debt financing, which means that those who buy MicroStrategy stock are willing to take the risks of bitcoin price changes. MicroStrategy’s bitcoin fundraising strategy has been in place since August 2020.
MicroStrategy isn’t the only one interested in buying bitcoin in a bear market. For example, the third-largest digital wallet not affiliated with cryptocurrency exchanges bought 4,779 BTC at an average bitcoin price of $15,923,000 in the past few days, increasing its balance to 143,464,000 BTC.
Prior to that, the wallet owner was selling bitcoins at $21,000 and buying at $18,000. This digital address’s transactions show that investing in bitcoins has been a strategy for him since 2019 and since then, $3.2 billion has been invested in buying bitcoins.

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