Miner Conviction Grows While India Eyes Strategic Bitcoin Reserve

Bitcoin’s role in global finance appears to be evolving, with miners increasingly choosing to hold their coins amid a revenue downturn and India’s ruling party proposing a sovereign Bitcoin reserve pilot to strengthen economic resilience.

Bitcoin Miners Defy Market Logic, Hoard BTC Despite Declining Revenue and Record Prices

Bitcoin miners have significantly increased their BTC holdings despite a challenging profitability environment and Bitcoin trading near its all-time highs. According to new data published by on-chain analytics firm CryptoQuant, miners have collectively added 4,000 BTC to their reserves since April 2025 — bringing their total holdings between 100 and 1,000 BTC to approximately 65,000 BTC, the highest level since November 2024.

This accumulation has occurred against the backdrop of mounting operational strain. Daily revenues for miners have plunged to a two-month low of $34 million as of June 22, largely due to falling transaction fees and a slight dip in BTC’s price following a recent all-time high.

Despite these pressures, miner selling activity has dropped dramatically. Outflows from miner wallets, which peaked at 23,000 BTC per day in February 2025, are now down to just 6,000 BTC — a trend that suggests miners are prioritizing long-term value over short-term cash flow.

Bitcoin Miner Total Outflows (Source: CryptoQuant)

Miners Endure “Extreme Underpayment” Conditions

CryptoQuant’s latest Weekly Report describes Bitcoin miners as being “extremely underpaid,” noting that the current income environment is the harshest it’s been over the past year. This downturn in miner revenue comes just months after April’s halving event, which reduced the block subsidy from 6.25 BTC to 3.125 BTC — effectively halving the amount of new Bitcoin earned per mined block.

Bitcoin Miner Profit/Loss Sustainability (Source: CryptoQuant)

Hashrate — the measure of computational power on the Bitcoin network — has dropped by 3.5% in the last 10 days, marking the largest drawdown since July 2024. This has likely put added pressure on marginal mining operations, particularly those in regions with high energy costs or aging equipment.

Still, many miners appear to be weathering the storm. CryptoQuant attributes this resilience to an average operating margin of 48%, which allows larger, more efficient mining firms to continue stockpiling BTC rather than liquidating it to cover expenses.

Perhaps the most notable trend is the near-complete cessation of sales from so-called “Satoshi-era” miners — individuals or entities who mined Bitcoin in its earliest days, likely between 2009 and 2011. These early adopters are often regarded as market-moving whales due to their large BTC holdings and historical tendency to sell into strength during major bull markets.

Bitcoin Satoshi-era Miner netflows (Source: CryptoQuant)

However, 2025 appears to mark a change in strategy. According to CryptoQuant, Satoshi-era miners have sold just 150 BTC this year, compared to nearly 10,000 BTC in 2024. That’s a staggering 98.5% decrease in sales volume, even as BTC/USD continues to flirt with new record highs.

Historically, movement of coins from these dormant addresses has signaled market tops and sparked panic among retail investors. The lack of activity from these wallets suggests either a newfound patience — or a deeper conviction that Bitcoin’s bull run is far from over.

Capitulation or Conviction?

This collective refusal to sell, even in the face of dwindling revenue, may be a bullish signal for Bitcoin’s price trajectory. Earlier in June, the widely-followed “Hash Ribbons” indicator — which monitors miner capitulation phases — flashed a classic “buy” signal. The metric has proven historically reliable in identifying price bottoms, as miner capitulation tends to precede recoveries when weaker operators exit and long-term holders double down.

With BTC currently trading just a few percentage points below its all-time high, miners’ behavior could suggest that they believe the market still has considerable upside. Their unwillingness to sell at or near the top may be signaling a longer-term price horizon beyond even the most optimistic projections currently circulating in the crypto space.

The implications of miners turning into net accumulators are significant. As one of the few consistent sources of sell pressure in the Bitcoin ecosystem, a decline in miner sales reduces the overall supply of BTC available on the open market. Coupled with continued institutional inflows and increasing adoption of spot Bitcoin ETFs, this creates a supply-demand imbalance that could act as a catalyst for further price appreciation.

Moreover, the alignment between miner activity and long-term holding behavior reinforces a broader narrative of Bitcoin’s maturation. Gone are the days when miners rushed to dump their holdings after each halving cycle. Instead, the trend is shifting toward strategic reserve management and capital discipline — a sign of the industry’s growing sophistication.

India’s Ruling Party Spokesperson Urges Bitcoin Reserve Pilot to Boost Economic Resilience

Meanwhile, in a move that could significantly reshape India’s digital asset landscape, Pradeep Bhandari, the national spokesperson for India’s ruling Bharatiya Janata Party (BJP), has publicly advocated for a pilot program to establish a sovereign Bitcoin reserve. 

The proposal, outlined in an op-ed for India Today, positions the initiative as a pragmatic step toward strengthening national economic resilience and embracing the growing legitimacy of digital assets on the global stage.

Bhandari cited the United States' strategic moves to accumulate Bitcoin and Bhutan’s government-led crypto mining initiatives as indicators that traditional finance is undergoing a crypto transformation. “This isn’t a reckless pivot,” he emphasized in the article. “It’s a calculated step toward embracing digital assets’ legitimacy.”

The Global Context: Bitcoin Becomes a Strategic Asset

Bhandari’s call for a Bitcoin reserve pilot is not made in isolation. The United States has recently outlined plans for budget-neutral Bitcoin acquisitions to bolster its strategic reserves. At least three US states have authorized Bitcoin as an official reserve asset. Meanwhile, Bhutan has deployed its renewable energy surplus to power state-backed Bitcoin mining operations.

These developments reflect a broader shift in how nations view crypto—not merely as speculative assets but as strategic instruments with geopolitical and macroeconomic utility.

According to Bhandari, India is uniquely positioned to lead this global shift, citing the country’s rapidly growing renewable energy sector. With vast potential in solar, wind, and hydroelectric power, India could develop a sustainable, state-managed Bitcoin reserve without compromising its environmental goals.

He stressed that such a pilot would not only align with India’s ambitions to be a global digital leader but also stimulate innovation and attract institutional interest. A government-supported Bitcoin reserve could provide confidence to both domestic and international investors, positioning India as a pioneer in the responsible adoption of crypto infrastructure.

Taxed but Unregulated: India’s Crypto Conundrum

Currently, India’s regulatory stance on cryptocurrencies remains ambiguous. While digital assets such as Bitcoin (BTC) and Ethereum (ETH) are taxed under a flat 30% capital gains regime, there is no formal regulatory framework guiding their use, trading, or custody.

Under Section 115BBH of the Income Tax Act, profits from selling virtual digital assets (VDAs) are taxed at 30%. While acquisition costs can be subtracted from gains, no deductions are allowed for losses or other expenses. Moreover, a 1% Tax Deducted at Source (TDS) is applied to all crypto transactions exceeding ₹10,000 (approximately $115), further dampening liquidity and market participation.

This duality—taxation without regulation—has stifled innovation and deterred retail and institutional involvement alike.

Bhandari referenced India’s leadership during its 2023 G20 presidency, where it spearheaded a crypto policy working group in collaboration with the International Monetary Fund (IMF). However, he warned that the international community is moving faster than India.

While recommendations will take their due course, Bhandari said, jurisdictions like Russia, China, Brazil, and other G20 nations led by the US are not pausing their crypto efforts to wait for a consensus.

He argued that India risks falling behind if it fails to act with urgency. A sovereign Bitcoin reserve pilot could serve as both a policy accelerator and a signaling mechanism to global markets.

A Strategic and Transparent Path Forward

According to Bhandari, the first step toward embracing this opportunity is the launch of a Bitcoin reserve pilot program, accompanied by well-defined regulatory policies. He emphasized that such a framework should be transparent, investor-friendly, and designed to foster innovation while upholding consumer protections.

He believes the initiative could act as a testing ground for broader digital asset strategies, from public-private partnerships in crypto infrastructure to government-backed mining operations powered by renewables.