The miner Marathon Digital recently transferred a total of 1,318 BTC, valued at approximately 86.9 million dollars, to various custody and trading venues, according to Arkham. This series of movements, executed in a ten-hour period, has arousing caution among institutional investors throughout the sector who fear a possible forced liquidation of assets during this week.
Most of these funds flowed to the credit and trading firm Two Prime, which received more than 660 units of the leading cryptocurrency in the global market. Through two coordinated transfers, the miner Marathon Digital executed the shipment of these activos, while market analysts observed with great concern the reduction of current operating margins within the industry.
Institutional capital transfers generate uncertainty about the operational stability of the sector
Additionally, approximately 300 BTC were sent to addresses linked to BitGo, totaling approximately 300 units of digital gold now residing in external custody. The miner Marathon Digital also directed 305 BTC to a new wallet, representing a treasury management strategy in the face of extreme volatility dominating the financial landscape after the recent price crash.
The timing chosen for these transactions is particularly sensitive, given that markets have experienced violent fluctuations since the massive liquidations seen this week, affecting general confidence. Therefore, traders remain alert for any sign that the miner Marathon Digital might be forced to sell its reserves to cover operating costs during this period of high stress.
While transfers of large volumes are usually routine, their interpretation in a thin market tends to generating supply signals that negatively impact current asset prices, experts warn. The connection with Two Prime suggests the miner Marathon Digital could be using its assets as collateral, seeking to mitigate the effects of global economic retreat through sophisticated financial instruments.
Currently, the price of Bitcoin is approximately 20% below its average production cost, which sits around 87,000 dollars according to data provided by Checkonchain, revealing financial pressure. Under these conditions, the miner Marathon Digital faces a scenario where generated revenues do not manage to compensate for energy and hardware expenses required to maintain the network.
Could the capitulation of large miners define a new floor for Bitcoin?
The history of bear markets suggests that trading below production costs is a common feature of capitulation, where the weakest participants abandon the network quite quickly for survival. Nonetheless, the miner Marathon Digital maintains a leadership position, allowing it to potentially resist prolonged periods of negative profitability for now compared to its smaller competitors in the mining space.
Thus, the recovery of confidence will depend on whether these coins stay in custody or are finally liquidated in the spot market to generate immediate liquidity, affecting support. The miner Marathon Digital will be closely watched, as any additional movement could trigger a massive chain reaction of sales among fearful retail investors across the globe.
Looking ahead, the market hopes that price stabilization will allow for a reduction in the volatility index that has reached maximum levels since 2022, favoring predictability. The miner Marathon Digital must navigate these turbulent waters, proving if its capital structure can endure a cryptographic winter more severe than initially anticipated by the main analysts.
However, the persistent uncertainty regarding the deleveraging of digital treasuries suggests that pressure on the price could remain high during coming weeks, hindering any bounce. While the miner Marathon Digital adjusts its strategies, investors will remain attentive to their financial results to evaluate the viability of the current business model during the next quarter.
