Riot Platforms Sells BTC for the First Time in 15 Months: What Drives Miners' Strategic Shift

Large mining centers (shown in the photo – one of the sites in the U.S.) allow publicly traded companies to mine thousands of bitcoins, amassing substantial cryptocurrency reserves.

Riot Platforms Breaks HODL Principle for the First Time in 15 Months

Mining company Riot Platforms has made a precedent: for the first time in the last 15 months, it sold part of its mined bitcoins. In April, Riot sold 475 BTC (approximately $38.8 million), whereas previously it adhered to a policy of complete retention (“HODL”) of all coins. The last time Riot engaged in the sale of mined BTC was in January 2024, after which it amassed its bitcoin treasury for more than a year. Now, however, the strategy has drastically changed: the management is deviating from the “not to sell” principle and moving towards partial monetization of its reserves.

Reasons for the Sale. According to Riot’s CEO Jason Les, the decision to sell the April haul was driven by the need to finance current business growth and operational expenses. Selling part of the accumulated BTC allows Riot to cover costs without resorting to additional stock issuance, thus avoiding dilution of current shareholders' stakes. In effect, the proceeds of $38.8 million are directed toward sustaining operations and scaling activities, which spares the company from raising capital through the issuance of new shares or debt instruments. Consequently, Riot aims to maintain financial stability and balance using a hybrid funding model: partially expending mined bitcoins while still preserving a significant reserve on the balance sheet.

Change of a Long-Standing Tactic. Until now, Riot Platforms has been one of the miners demonstrating a conviction in the long-term growth of bitcoin through the HODL strategy. By the end of April, the company still held about 19,211 BTC on its balance sheet, reflecting strong faith in the future potential of the cryptocurrency. However, the worsening mining conditions – rising network difficulty and shrinking margins – compel even such HODL proponents to rethink their approaches. The sale of 475 BTC in April signals Riot's transition from pure accumulation to a more balanced treasury strategy, where some newly mined coins may be sold to support business activities. At the same time, Riot asserts that it still believes in the “long-term value of bitcoin” and will closely monitor the market to return to building reserves under favorable conditions. In other words, this step is considered a strategic pause in HODL policy rather than a complete abandonment of it.

Marathon Digital Sticks to HODL Despite Declining Production

In contrast to Riot, its main public competitor – Marathon Digital Holdings (MARA) – continues to refrain from selling any satoshis from mined bitcoins. As of the end of April, Marathon produced 705 BTC, which is a 15% decrease from March (829 BTC) due to an approximately 8% rise in mining difficulty. Nevertheless, all mined BTC remains on Marathon’s balance sheet, with not a single coin sold over the month. The company remains committed to a 100% holding strategy: even amid decreasing monthly bitcoin output, Marathon has not altered its approach or made any sales.

Largest Treasury Among Miners. Thanks to this long-term HODL strategy, Marathon has amassed the most impressive cryptocurrency reserve in the industry – as of April 30, its balance stands at 48,237 BTC. This is more than 2.5 times Riot's reserve and makes Marathon the largest bitcoin holder among public mining companies. Thus, even a temporary decline in production (associated with the record growth in network hashrate and mining difficulty in April) did not prompt Marathon to make any sales. Instead, like before, the company funds operational expenses and business development through external sources – stock sales in the market (ATM programs) or securing loans, thereby keeping its mined BTC intactt. This approach indicates Marathon's management's confidence in further price growth for bitcoin: they prefer to cover expenses through fiat financing, hoping that the retained coins will yield greater value in the future.

Current BTC Balances. The contrast in approaches between Riot and Marathon is sharply highlighted in the sizes of their bitcoin treasuries at the end of April. Riot Platforms owns 19,211 BTC, while Marathon Digital has amassed a record 48,237 BTC. Both companies are leaders in the industry, but Riot has now begun to slightly reduce its reserve (selling 12 BTC beyond its April production), whereas Marathon continues to accumulate holdings. For investors, these figures are an important indicator of financial strategy: Riot emphasizes flexibility and avoiding losses, while Marathon focuses on maximizing its BTC capital share in anticipation of asset value growth.

Funding through Bitcoins: Credit Lines vs. Sales

Interestingly, both companies utilize bitcoins as a financing tool but in different ways. Riot Platforms recently opened a credit line of $100 million through Coinbase's subsidiary, collateralizing a portion of its bitcoin reserves. The loan has a term of approximately one year and an interest rate starting at 7.75% per annum, with collateral consisting only of a portion of Riot’s treasury BTC. Essentially, Riot monetizes its bitcoin treasury without a direct sale: borrowed funds will be directed toward strategic initiatives and corporate goals. “This credit line is a key step towards diversifying funding sources... allowing us to avoid issuing new shares,” stated Jason Les, emphasizing the aim to support business growth without sacrificing the long-term stake of shareholders. Thus, Riot balances between borrowing against BTC and partially selling its output, combining both methods to minimize capital dilution.

Marathon Digital, on the other hand, is also actively leveraging traditional capital markets. In addition to periodic stock sales through ATM programs, Marathon has previously secured loans collateralized by bitcoins and equipment. For example, it expanded its energy capacities, financing them through issuing convertible bonds and credit lines (although some loan agreements were restructured after the liquidity crisis among creditors in 2022). Currently, Marathon has not reported any new loans against its BTC, but it clearly indicates that it prefers debt and equity financing over selling crypto-assets. This tactic allows it to remain one of the largest "hodlers" among miners, although it makes results more dependent on stock market conditions.

Strategies of Other Major Miners: CleanSpark, Hut 8, Bitfarms

Riot and Marathon are not the only public miners adapting their financial policies to market conditions. Let's look at how other major players in the industry are acting:

• CleanSpark – one of the fastest-growing mining companies in the U.S. – recently also adhered to a 100% HODL policy. By the beginning of April, it had surpassed 12,000 BTC in its treasury (over $1 billion at a price of ~$84.5k), making CleanSpark the third-largest holder after Marathon and Riot. However, in April, the management announced a change of course: CleanSpark will begin selling part of its monthly production to cover operational expenses. Simultaneously, the company expanded its credit line with Coinbase to $200 million – akin to Riot – to finance growth without additional stock issuance. CleanSpark's CEO Zach Bradford noted that “a more effective way to enhance shareholder value is to balance the monetization of new production with the buildup of long-term reserves,” rather than fully retaining all produced BTC. In March, CleanSpark mined 706 BTC and sold only 14 BTC from this amount, but starting in April, the share of sold coins will increase. Nonetheless, the company clearly intends to maintain a significant portion of its production in reserve, continuing to build its treasury (expected to reach approximately 12,500 BTC by the end of April). This “hybrid” strategy is meant to reduce reliance on external capital and strengthen CleanSpark’s position in the long term.

• Hut 8 Mining – a Canadian mining firm – has historically been one of the staunchest proponents of HODL. By the end of March, its reserve was approximately 10,264 BTC, and Hut 8 had long refrained from selling their mined coins, financing operations through fiat means. However, the severe crypto winter of 2022 and the need to merge with US Bitcoin Corp. necessitated adjustments. In 2023–2024, Hut 8 has sporadically sold small volumes of BTC to cover operational expenses (for instance, in March it sold approximately 61 BTC out of 88 mined). Nevertheless, the majority (~70%) of production continued to go into the treasury. By March 2025, Hut 8 significantly increased its hashrate to 9.3 EH/s (thanks to a merger of capacities with a partner), which boosted BTC output. It is likely that by the end of April, the company mined around 150 BTC, and although Hut 8’s official reports are now released quarterly, we can expect it to retain a substantial portion of these coins. Additionally, Hut 8 is diversifying its business – expanding its data center and hosting segment, which may reduce the need to sell accumulated bitcoins in the future. Overall, Hut 8 remains one of the largest hodlers in the sector but displays flexibility, preparing to partially monetize its production if necessary.

• Bitfarms – in contrast to the aforementioned, is forced to regularly sell significant portions of mined BTC to maintain liquidity. The Canadian-Argentinian Bitfarms suffered greatly during the 2022 bear market: during that time, it sold most of its treasury to pay off debts. Its balance is now considerably modest – around 1,005 BTC by the end of April. In April, Bitfarms mined only 268 BTC (significantly less than market leaders, due to a lower hashrate of ~19 EH/s). To cover costs, Bitfarms effectively sold its entire April production and an additional ~135 BTC from its reserve, reducing its treasury from 1,140 to 1,005 BTC (–12%) over the month. The company announced the opening of a new credit line up to $300 million to finance data centers, but it continues to use its mined bitcoins as a source of operational cash. Bitfarms’ strategy reflects the situation of many mid-tier miners: predominant sales of production for operational support and debt servicing. While this does not allow for building large BTC reserves, this approach is considered more conservative during market volatility, providing the necessary fiat liquidity.

April 2025 Public Miners' Production and Reserves Summary

For a visual comparison, below are the key indicators of several leading public mining companies for April 2025 – the amount of mined bitcoins sold during the month and the size of the BTC treasury at the month's end:

Note: For CleanSpark and Hut 8, the April data is partially based on official announcements and estimates, as these companies have transitioned to quarterly reporting. The figures provided reflect an approximate order of production and BTC held/sold. Bitfarms sold more BTC than it mined in April, reducing its balance (–135 BTC over the month).

The table highlights varying behaviors among the miners. Riot and Bitfarms sold more bitcoins in April than they mined (Riot due to a strategy shift, Bitfarms due to funding needs), while Marathon sold nothing. CleanSpark and Hut 8 fall in the middle: the former is just beginning partial sales (while still retaining most production), and the latter maintains its HODL policy with minor forced sales. BTC balances at the end of the month demonstrate a division within the sector: from tens of thousands of BTC held by leaders to around 1,000 BTC for smaller players. Collectively, public miners continue to hold a substantial volume of bitcoins; however, the share of coins entering the market from their sales is gradually increasing compared to the previous year.

The Short-Term Impact of Large Miners’ Sales on the BTC Market

A question concerning investors is: how do the sales of thousands of BTC by mining companies affect the price of bitcoin? In the short-term, large batches hitting the market from miners can put noticeable pressure on the price. When companies like Riot or Bitfarms sell significant volumes, it increases the supply of BTC in the spot market, which, all else being equal, pushes quotes downward. Analysts note that continued sales by large holders (which include miners) can lead to price pullbacks. For instance, the November increase of bitcoin in 2024 to ~$90k was accompanied by profit-taking by some miners, contributing to the correction following the peak.

Market Reaction. Traders closely monitor metrics such as miner outflows (miners' funds flowing to exchanges) and miner net position change. A sharp increase in sales from miners may induce heightened volatility: additional volumes can trigger short-term price drops and spikes in bearish sentiment. However, much depends on the method of execution: if coins are sold gradually through over-the-counter transactions or used as collateral (as with Riot and CleanSpark), direct pressure on exchange prices is minimized. Furthermore, the aggregate sales from miners currently represent a relatively small portion of the total daily trading volume in the BTC market. For illustration: even $38.8 million from Riot is a drop in the bucket compared to multi-billion daily turnovers of bitcoin. Therefore, localized effects from miners' sales are generally short-lived. After the initial market reaction, it tends to absorb this supply, especially if there remains an influx of capital from other investors.

Mid-Term Factor. Over the months, miners' policies can affect the overall balance of supply and demand in the cryptocurrency market. If more large miners engage in partial monetization (as we are already observing with Riot, CleanSpark, and others), the influx of new BTC supply will rise. In the post-halving period (after the reward was cut in half in April 2024), daily bitcoin issuance has already fallen to ~450 BTC per day; however, the increase in the share of coins sold by miners may counterbalance the effect of reducing issuance. A long-term trend towards selling parts of production can create headwinds for price growth by keeping quotes from soaring. Conversely, if the price of bitcoin rises significantly, miners will have the opportunity to sell less (in dollar terms, they will need to realize a smaller portion of production to cover costs). In this way, there exists a kind of feedback loop: high prices reduce sales pressure, while low prices may force miners to liquidate (as in 2022). Overall, miners’ behavior has become more market-friendly now than in past cycles: instead of a panic sale of large volumes at the market bottom (as some did previously), companies are attempting to plan sales at relatively favorable price levels and use alternative financing tools. This softens the potentially negative impact on the market by spreading sales more evenly.

Forecast: What to Expect from Bitcoin Prices Considering Miners' Actions

Given the activity of large miners and the current macroeconomic environment, the bitcoin outlook for the coming months requires a balanced approach. On one hand, the retention strategy by some miners (like Marathon, Hut 8) and limited new BTC inflows post-halving create conditions for supply shortages, supporting price. Moreover, institutional interest in bitcoin remains high: market sentiment is influenced by expectations for the approval of spot BTC-ETFs in the U.S., investments from funds, and capital influx from traditional investors searching for inflation hedges. These factors may offset miners' sales. Some analysts believe bitcoin has a chance to reach a new all-time high and surpass the $100,000 milestone in the upcoming quarters, especially if optimism resurfaces in the risk asset markets.

On the other hand, macroeconomic conditions add uncertainty. The Federal Reserve's strict monetary policy in 2024 and early 2025 (high interest rates, tightening liquidity) has restrained the growth of cryptocurrencies. While Fed Chairman Jerome Powell indicates no basis for lowering rates, Bitcoin, like stock indices, is sensitive to these signals. If rates remain high and risk appetite diminishes, BTC's price rally could slow down. In such a scenario, miners facing a prolonged price plateau may be inclined to continue selling portions of their reserves, exacerbating market pressure. Pullbacks to key support levels are possible – for instance, many investors consider the retention of the $70,000–$80,000 range in 2025 critical. Under adverse developments (recession, stricter regulations), bitcoin could temporarily drop into this corridor.

Nevertheless, the base scenario for most analysts remains positive: decreased sales rates by miners combined with price growth and an improvement in macro conditions in the second half of the year could pave the way for bitcoin to reach new peaks. The post-halving cycle traditionally leads to a bull market, and while its amplitude may be tempered by sellers, the fundamental supply trend remains in favor of growth (issuance has been halved). As the economy stabilizes and the first signs of easing Fed policy emerge, interest in bitcoin as a finite digital asset may surge dramatically. In such a case, bitcoin's forecast for the end of 2025 remains optimistic – reaching $100,000–$120,000 by conservative estimates and up to $150,000–$180,000 according to bolder predictions from major investors. However, achieving these goals largely depends on the “behavior of large players” – and miners play a significant role here. Their current moderately selling position indicates that a rapid price surge (as in 2021) may not occur, yet the market's resilience is increasing: the lack of mass sell-offs even amid corrections suggests industry maturity.

Conclusion for Investors: Careful monitoring of mining companies' reports is a crucial element in analyzing the BTC market. Riot Platforms' shift in strategy shows that even staunch hodlers are willing to adapt to conditions, meaning that sales pressure from miners may slightly increase in the near term. However, this occurs against a backdrop of rising institutional demand and diminishing new issuance, so the overall balance remains favorable for bitcoin to maintain high price levels. Institutional and private investors ought to consider miners' strategies as indicators: their confidence or doubts about the market's future often precede price trends. Currently, miners exhibit restrained optimism – by realizing profits on portions of positions, they nonetheless retain a lion's share of bitcoins, indicating a long-term bullish outlook for the industry regarding the main crypto asset. As mining margins improve and macro policies potentially ease, miners may begin to rebuild their reserves, which would serve as an additional driver for BTC growth in the medium term. Thus, although the sales from Riot and others suggest a cooling of enthusiasm, the overall picture still indicates that the bitcoin market is in a phase of stable development, while major players prepare for new price record peaks.