Bitcoin Miners Dump 40% of Mined BTC in March Amid Rising Costs and Tariff Fears

Bitcoin miners offloaded over 40% of their mined BTC in March, marking the highest monthly sell-off since October 2024. This sharp pivot from accumulation to liquidation comes amid rising operational costs and fears over U.S. tariff policy, triggering renewed uncertainty about the financial viability of mining in the U.S.

Bitcoin Miners Liquidate Holdings as Costs and Uncertainty Mount

March saw Bitcoin miners unload a massive 40% of their newly mined coins, a significant departure from their typical strategy of holding BTC post-halving. According to TheMinerMag, this marks the most aggressive liquidation in five months. The sell-off is largely attributed to intensifying macroeconomic challenges and a growing need to maintain liquidity.

Notably, this increased sell pressure contributed to Bitcoin’s 2.3% drop in March, which followed an already steep 17.39% correction in February. With inflation climbing and operational costs soaring, miners were forced to dump their holdings just to stay afloat—highlighting how fragile the mining sector has become in the face of external shocks.

U.S. Tariffs, Energy Prices Erode Bitcoin Mining Profitability

Compounding the financial strain on Bitcoin miners are rising geopolitical tensions and tariff threats under President Donald Trump’s administration. The proposed 24% tariff on imported mining equipment could drastically increase operational costs for U.S.-based miners, making domestic mining less competitive.

Kristian Csepcsar of Braiins noted that producing advanced mining equipment entirely within the U.S. is currently impractical. Energy tariffs and supply chain disruptions would make it even harder for local firms to compete globally. Jaran Mellerud, CEO of Hashlabs, echoed this concern, warning that the American mining industry could face a mass exodus of hardware suppliers.

He predicts that mining equipment manufacturers will begin redirecting shipments to more cost-effective regions like Scandinavia. Finland, for example, offers stable energy prices and no trade restrictions, making it an increasingly attractive destination for mining operations.

Bitcoin as a Strategic Reserve? Meliuz and Trump Proposals Add Complexity

Interestingly, while miners are liquidating BTC to stay afloat, others are viewing Bitcoin as a strategic asset. Brazilian fintech Meliuz has proposed adopting Bitcoin as its core treasury reserve, doubling down despite market volatility.

At the same time, political speculation is mounting in the U.S., with reports that President Trump may seek to acquire up to 1 million BTC as part of a national strategic reserve. While unconfirmed, the mere rumor of such a move has sparked debate over Bitcoin’s future role in U.S. monetary policy—and some believe it could send BTC soaring toward $1 million per coin.

Conclusion: Miners Under Pressure While Institutional Demand Grows

The 40% BTC liquidation in March reflects the financial squeeze Bitcoin miners now face. Tariffs, energy costs, and geopolitical instability have pushed miners to abandon accumulation strategies. Until U.S. policy uncertainty eases, more sell-offs could follow—even as institutional interest in Bitcoin continues to rise globally. The tug-of-war between miner survival and Bitcoin adoption may define the next stage of the crypto cycle.

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